The Tuas Ltd (ASX: TUA) share price is up close to 11% after the telco announced its FY24 result.
Tuas is a telecommunications business that operates in Singapore.
FY24 result
Here are some of the main highlights from the result to 31 July 2024:
- Subscribers grew by 28.6% to 1.05 million
- Mobile average revenue per user (ARPU) increased by 3.3% to $9.68
- Revenue rose 36% to $117.1 million
- EBITDA grew by 60% to $49.7 million
- Net loss improved by $10.9 million to a loss of $4.4 million
- Positive operating cash flow of $60 million
Pleasingly, the business delivered a significant increase in the EBITDA margin, with an increase to 42%, up from 36% in FY23.
Tuas said that increased subscribers and an expanded plan mix that caters to an array of customers’ needs were drivers of the result.
In terms of its mobile operations, Tuas said there has been an increased focus on “driving value at every price point”. It has been investing in capital expenditure to “support subscriber growth and expand 5G coverage”. Tuas also pointed to the recent regulatory decision to allow 5G on the 900MHz band in addition to the existing 4G deployment.
Turning to the fibre broadband initiative, it’s now accepting 10GB per second orders island-wide for all central offices serving up to 1.6 million residential homes. There are more than 4,000 subscribers at the end of FY24. Tuas points to strong consumer interest.
What’s the outlook for the Tuas share price?
Tuas said in terms of FY25, there is a continued push for more broad-based mobile subscriber growth.
Mobile and broadband capital expenditure guidance is for between $45 million to $55 million.
The company is targeting full-year positive net profit after tax (NPAT), which would be another positive step for the company, in my opinion.
It’s also focused on growing its 10GBps residential fibre broadband momentum.
I think the company has a very promising future, which is why I recently bought Tuas shares. It’s not as cheap as it was yesterday, but I think the company still has a very promising future at the current valuation.
It’s one of the ASX growth shares I’ve got my eyes on for the future.
