Highlights

  • Tuas Limited (ASX:TUA) continues expanding its Simba mobile and broadband operations despite the termination of the proposed M1 acquisition.
  • HY26 Revenue increased 26 per cent to S$91.9 million, while underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 27 per cent to S$42.1 million.
  • Mobile active services reached 1.41 million, supported by continued subscriber growth in Singapore’s telecommunications market.
  • The company continues to hold a significant cash position while awaiting regulatory developments and assessing future Capital allocation options.

Tuas Limited (ASX:TUA) has shifted back to an organic growth strategy after the proposed Acquisition of M1 Limited was terminated, leaving investors focused on subscriber growth, profitability and regulatory developments.

The Singapore-focused telecommunications company continues to expand its Simba mobile and broadband operations, with revenue and earnings growth maintained despite the removal of its acquisition-led expansion plan.

The Investment case has changed from combining with an established operator to proving that a challenger telecom provider can continue gaining Market Share independently.

Latest Development

On 11 August 2025, Tuas announced an agreement to acquire M1 Limited from Keppel in a transaction valued at approximately S$1.43 billion.

The proposed acquisition was intended to combine Simba with M1 and create Singapore’s second-largest mobile operator.

However, on 18 May 2026, Tuas announced that Singapore’s Infocomm Media Development Authority (IMDA) had suspended its review of the transaction following concerns regarding potential use of unauthorised radio frequency spectrum.

The company subsequently terminated the M1 sale and purchase agreement on 22 May 2026 after regulatory approval could not be obtained within the required timeframe.

Tuas stated that Simba would continue cooperating with the IMDA review process.

The company’s latest operating information remains based on its HY26 result released on 25 March 2026.

Why It Matters

Operational performance remained positive despite the acquisition setback.

For the six months ended 31 January 2026, Tuas reported revenue growth of 26 per cent to S$91.9 million. Underlying EBITDA increased 27 per cent to S$42.1 million, while statutory EBITDA was S$31.6 million after including S$10.5 million of one-off M1 acquisition-related costs.

The EBITDA Margin increased to 46 per cent from 45 per cent.

Statutory net profit after tax reached S$8.2 million, up 173 per cent compared with the prior corresponding period, while Operating Cash Flow was S$50.1 million.

The company held S$478.0 million in cash and term deposits at 31 January 2026, partly reflecting proceeds from the S$364.5 million Equity raising completed for the M1 transaction.

Mobile active services increased to 1.41 million, while broadband services exceeded 46,000. Gross mobile average revenue per user was S$9.61 compared with S$9.60 previously.

FY26 Capital Expenditure guidance remained at S$50 million to S$55 million across mobile and broadband infrastructure.

The Bigger Story

Tuas entered the Singapore telecommunications market as a challenger to established operators including Singtel, StarHub and M1.

The company’s strategy has been based on gaining subscribers through competitive pricing and expanding network utilisation to improve operating leverage.

FY25 showed early progress, with revenue increasing 29 per cent to S$151.3 million, EBITDA increasing 38 per cent to S$68.4 million and maiden net profit of S$6.9 million.

The failed M1 acquisition would have accelerated this strategy by adding scale. Following the termination, Tuas will need to continue expanding independently while competing against larger operators with established infrastructure and customer bases.

The company’s Balance Sheet remains a key asset, providing flexibility for network investment, broadband expansion or future strategic decisions.

What Is Driving the Investment Case?

Subscriber growth remains the primary operating driver. Mobile active services have continued increasing, demonstrating Simba’s ability to attract customers in a competitive market.

The broadband Business provides another growth avenue, with a smaller existing customer base but potential for higher customer value.

The company’s cash position provides additional flexibility after the M1 acquisition funding was no longer required, allowing management to evaluate future capital allocation options.

Bull Case

If subscriber growth continues and average revenue per user remains stable, Tuas could continue expanding earnings through operating leverage.

The company’s mobile and broadband infrastructure investment is being funded through operating cash flow, reducing dependence on external capital.

A large cash balance also provides flexibility for network expansion, potential acquisitions or Shareholder capital management initiatives.

The ownership structure, including significant holdings by key shareholders, provides continuity in strategic direction.

Risks

The IMDA regulatory review remains a key uncertainty. Any adverse outcome could result in financial penalties, additional compliance requirements or restrictions affecting Simba’s operating licence.

The company also faces competitive pressure from established Singapore telecom operators, which may respond through pricing or customer retention initiatives.

Tuas’ earnings base remains relatively small compared with its market value, meaning slower subscriber growth, lower average revenue per user or increased operating costs could affect expectations.

The company currently does not pay a dividend, with future capital allocation decisions dependent on growth requirements and strategic priorities.

What Investors Should Watch Next

The FY26 full-year result for the year ended 31 July 2026 will be the next major update, with investors monitoring revenue growth, subscriber additions, profitability and cash utilisation.

The outcome of the IMDA regulatory process will also remain important.

Further areas of focus include capital allocation decisions following the termination of the M1 acquisition, broadband expansion, mobile average revenue per user trends and future network investment.

Outlook

Tuas enters FY27 as a more focused telecommunications business, with continued subscriber growth, positive earnings and a substantial cash position.

The company’s growth pathway is now centred on organic expansion rather than the previously proposed M1 combination. This reduces integration complexity but places greater importance on continued customer growth and competitive execution.

The FY26 result and regulatory developments will provide further insight into whether Tuas can continue scaling its operations while maintaining profitability.