The Tuas Ltd (ASX: TUA) share price jumped 7% in morning trading after the ASX telco share gave an update at its annual general meeting (AGM), which was very promising.
Tuas is an ASX telco share that’s based in Singapore. It has steadily grown its market share to a sizeable position in the Asian country.
2024 AGM update
The AGM gives companies a chance to tell investors how the last financial year went and also give an update about how things are going in the new financial year.
Tuas made $117.1 million of revenue in FY24 and it generated $49.7 million of EBITDA, which was impressive progress in my eyes.
The FY25 first quarter, revealed today, demonstrated even stronger financial performance. In the first three months of the 2025 financial year, it generated $35.5 million of revenue – on an annualised basis, this represents 21.2% growth compared to FY24. The FY25 first quarter also saw $16.1 million of EBITDA, which is 29.6% growth on an annualised basis compared to FY24. I think there will be more growth over the rest of FY25.
Tuas revealed that its net profit after tax (NPAT) was positive in the FY25 first quarter, which I think is a pleasing development and an important milestone. Ongoing growth of subscribers should help significantly increase the NPAT margin in the coming years.
Operating cashflow also continues to grow – in FY24 it made $60 million of cashflow and in the first quarter of FY25 it generated $18.3 million of cashflow, up 22% on an annualised basis compared to FY24.
The ASX telecommunications company reported its active mobile subscribers reached 1.11 million at the end of the first quarter, up 26.6% year on year and up 5.7% compared to the fourth quarter of FY24.
It also revealed it has made progress with its home broadband segment – it has reached more than 10,000 active subscribers as of 30 November 2024. This was an increase of approximately 6,000 since the end of FY24.
Outlook for the Tuas share price
I’m very optimistic about the future of Tuas. It’s growing both its mobile and broadband subscribers. It’s achieving profitable growth and good cashflow, which can allow it to continue investing for more growth in the coming years. Tuas also said that it’s “targeting new mobile segments”, which is exciting. It has already reached a market share of 10.7% of the Singapore mobile market as of July 2024.
If the business ever expands internationally to other countries, I think that would be a reason to be more excited about the business.
