The Tuas Ltd (ASX: TUA) share price is in focus after reporting its FY25 half-year result.
Tuas is a telecommunications business based in Singapore. It has a market share of over 10% of Singapore’s mobile subscribers and a fledgling broadband business.
FY25 half-year result
Below are some of the highlights from the six months to 31 January 2025 (in Singapore dollars):
- Revenue increased 34% to $73.2 million
- EBITDA rose 48% to $33 million
- Net profit after tax (NPAT) jumped 186% to $3 million
- Earnings per share (EPS) increased 186% to $0.65
- Cash and term deposits rose 54% to $73.1 million (with $41.8 million operating cash flow)
Tuas said it has seen continued strong improvement in key financial metrics and achieved its first half-year net profit after tax.
A key element of the growth was the 23.7% rise of active mobile subscribers to 1.16 million. I think this growth is essential for Tuas shares in the coming years.
The business is also making pleasing progress with its broadband offering. In the first half of FY24 it had 249 broadband subscribers, which grew to 3,287 in the second half of FY24, and in this result it reached 14,347.
In terms of its mobile offering, Tuas said it’s adding greater value and differentiation to compete, while continuing to invest capital in its network to support subscriber growth. The company said 5G upgrades and coverage expansion are “proceeding well” and it’s exploring opportunities for a data-only segment.
Tuas also said that its fibre broadband has a number of key differentiators including the lowest price, highest speed and no upfront costs. It continues to focus on winning new customers and upgrading its existing 2.5Gbps connections.
Outlook for the Tuas share price
The company is expecting more broad-based mobile subscriber growth, with an expansion of subscriber acquisition channels.
It’s expecting to achieve positive full-year net profit in FY25, and spend between $50 million to $55 million on mobile and broadband capital expenditure.
The business is an exciting ASX growth share in terms of expanding internationally, particularly if it’s able to grow in other places such as Malaysia, Indonesia and Hong Kong.
I’m not sure if it’s a great value buy today – the market is expecting a lot of growth in the coming years – but any noticeable pullbacks could be a buying opportunity. It’s pleasing to see the business is growing its broadband market share.
