+ Of the S$7.5mn improvement in revenue, $4.7mn is from diversion. Diversion revenue comes from removing old fibre ducts to new locations due to the construction of new highways, MRT network and property development projects. Increased construction activity will speed up the completion of new homes and will aid in residential fibre connections.
– Extra capex and interest expenses jump. CAPEX rose 31% YoY to S$96.7mn. The extra spending is for a new Seletar Central Office (CO). CAPEX is expected to remain elevated this year. Capital commitments have almost tripled to S$138mn (FY22: S$52mn). The extra CAPEX required an increase in borrowing by around S$70mn, leading to higher interest expenses. As the country heads towards 10GBps broadband, more equipment will be required in the COs. To cater for the extra equipment, NetLink will need to expand power, cooling and space in the COs. The push toward Wifi 6e and 7, will be additional catalysts to drive up broadband demand.