The Tuas Ltd (ASX: TUA) share price is in focus after the Singapore telco reported significant growth in its FY25.
Tuas is a telecommunications business based in Singapore. It’s in the process acquiring another telco called M1.
Tuas FY25 result
The business reported how it performed in the 12 months to 31 July 2025:
- Active mobile services increased 19% to 1.25 million
- Revenue grew 29% to S$151.3 million
- EBITDA (EBITDA explained) rose by 37.6% to S$68.4 million
- Net profit after tax (NPAT) increased S$11.3 million
- Operating cashflow of S$51.2 million
Tuas said that its mobile user numbers achieved sustained growth, with “market leading inclusions” at each price point, catering to a wide array of customers. Expanded sales channels include Changi Airport terminals and 7-Eleven stores.
The company noted continued capital expenditure investment to support subscriber growth and expand 5G coverage. Its mobile average revenue per user (ARPU) for FY25 was S$9.60.
Plus, the business continues to grow with its fibre broadband offering. Its active broadband services ended FY25 with 25,592 subscribers, which increased by 11,245 over six months and 22,305 over 12 months.
In terms of the outlook as a standalone business, the company is expecting subscriber growth trends to continue in FY26 – this is key for the Tuas share price, in my opinion. Mobile and broadband capital expenditure guidance for FY26 is between $50 million to $55 million.
M1 acquisition update
The company noted it announced the acquisition of M1, excluding its ICT businesses, for an enterprise value of S$1.4 billion on a debt-free and cash-free basis.
The acquisition price implies a multiple of 7.3x M1’s EBITDA of S$195.4 million, excluding the ICT businesses, for the 12 months to 30 April 2025. This excludes any potential synergies between the two businesses.
The acquisition is being funded by existing cash, a completed capital raising of A$385 million and S$1.1 billion of fully underwritten bank debt.
It’s also aiming to raise up to A$50 million through a share purchase plan (SPP), which closes on 25 September 2025 (which is tomorrow).
Final thoughts on the Tuas share price
The business continues to grow at a strong pace, though the Tuas share price has risen significantly in the past couple of years too, reflecting the excitement of the market already has in the business. It’s up 50% in just a year.
I think the business has an exciting future, though a lot of success is already priced into its valuation. In five years I believe the business could be larger and this could still be a good time to invest.
