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Tuas Ltd, a telecommunications company operating in Singapore, has experienced a significant rise in its share price, increasing nearly 11% after announcing its fiscal year 2024 (FY24) results.
FY24 Results Overview
The highlights from Tuas's (ASX:TUA) results for the period ending 31 July 2024 showcase substantial growth:
- Subscriber Growth: Tuas reported a 28.6% increase in subscribers, reaching 1.05 million.
- Average Revenue Per User (ARPU): The mobile ARPU rose by 3.3%, now standing at $9.68.
- Revenue Growth: Total revenue surged by 36%, totaling $117.1 million.
- EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by an impressive 60%, reaching $49.7 million.
- Net Loss Improvement: The net loss improved by $10.9 million, narrowing to $4.4 million.
- Operating Cash Flow: Tuas reported a positive operating cash flow of $60 million.
- EBITDA Margin: The EBITDA margin increased to 42%, up from 36% in FY23.
These results reflect Tuas's successful strategies, which include an increase in subscribers and a diverse plan mix designed to meet various customer needs.
Strategic Focus and Developments
In its mobile operations, Tuas has prioritized “driving value at every price point.” The company is investing in capital expenditure to support subscriber growth and expand its 5G coverage. A recent regulatory decision allowing 5G deployment on the 900MHz band, alongside existing 4G services, is expected to further enhance its offerings.
Tuas has also made strides in its fibre broadband initiative, now accepting orders for 10GB per second service across all central offices, which serve up to 1.6 million residential homes. As of the end of FY24, Tuas reported over 4,000 subscribers in this segment, indicating robust consumer interest.
Future Outlook
Looking ahead to fiscal year 2025 (FY25), Tuas aims to maintain momentum in mobile subscriber growth. The company has set its capital expenditure guidance for mobile and broadband between $45 million and $55 million. Additionally, Tuas is targeting a full-year positive net profit after tax (NPAT), a goal that would mark a significant achievement.
The focus on expanding its 10GBps residential fibre broadband services further illustrates the company's commitment to growth and innovation in the telecommunications sector.
With these strong fundamentals and growth strategies in place, Tuas Ltd appears well-positioned for a promising future in the telecommunications industry. Investors and market watchers alike will be keenly observing how Tuas continues to execute its plans and capitalize on the evolving market landscape.
