The Tuas Ltd (ASX: TUA) share price has jumped 7% after the Asian ASX telco share gave an AGM update.
An AGM refers to the annual general meeting of shareholders. Tuas currently has operations targeted at Singapore.
The ASX telco share is performing strongly
The company reminded investors its FY23 revenue was $86.1 million and EBITDA (EBITDA explained) was $31.1 million
In the first quarter of FY24 it achieved revenue of $26.7 million and EBITDA of $11 million. If it repeated those numbers every quarter, it’d show 24% revenue growth and 41% growth of EBITDA. That’d be good news for the Tuas share price.
FY24 Q1 operating cashflow was $12.8 million, compared to $40 million for the whole of FY23.
At the end of FY23 it had 819,000 active services and at the end of the FY24 first quarter it had around 879,000 active services. It currently has more than 900,000 active subscribers. The service numbers are growing at an impressive rate.
The average revenue per user (ARPU) for the first quarter of FY24 was $9.53, up from $9.37 in FY23.
Its 5G progress continues – by the end of 2023 it’s expecting 60% outdoor coverage and by the end of 2026 it’s expecting 95% outdoor coverage.
Outlook for the Tuas share price
Tuas said its 5G network rollout is “ahead of plan”, which is encouraging, I’d suggest it may mean it can win more customers because its service offering is going to be stronger than originally expected.
The ASX telecommunications share also revealed the fibre broadband rollout is “progressing with strong public interest”.
It noted there is no change to its FY24 capital expenditure guidance of between $45 million to $50 million.
Tuas noted its outlook is “supported by stable Singapore economy forecasted to grow 1% to 3% in 2024”.
Thoughts on the Tuas share price
In 2023 to date, Tuas shares have risen by 100%, which is really impressive. It’s steadily increasing its market share which is helping profitability because it’s utilising the same infrastructure across more users.
Profit is increasingly at a fast pace and as long as users keep growing and ARPU is stable (or grows) then Tuas could be onto a winner.
I’m particularly interested to see if the company expands into other Asian markets, which could significantly expand its total addressable market.
