Tuas Limited (ASX:TUA): Simba Spectrum Notice Meets Higher FY26 Earnings

Aditi Sarkar

12 November 2026 09:19 PM AEDT

Tuas Limited (ASX:TUA): Simba Spectrum Notice Meets Higher FY26 Earnings

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Highlights

Tuas reported FY26 Revenue of SGD 187.6 million.
Net profit after tax increased to SGD 26.0 million.
The regulator issued Simba a show-cause notice in October 2026.
Simba was required to respond by 16 November; no final regulatory finding was established.

Tuas Limited (ASX:TUA) is an Australian-listed telecommunications group whose operating business, Simba Telecom, serves customers in Singapore. Simba supplies mobile services over its own network and also offers fibre broadband. Its FY26 financial results showed additional subscribers and improved earnings, while a Singapore regulatory process concerning radio-spectrum use created an important uncertainty separate from reported trading performance.

Regulatory Notice and the Pending Response

On 26 October 2026, Tuas disclosed that Singapore's Infocomm Media Development Authority had issued a show-cause notice to Simba. The notice concerned allegations relating to spectrum use and compliance arrangements. The regulator had not made final findings or decided on enforcement action when the notice was issued; allegations must therefore not be presented as established breaches.

Simba was required to respond by 16 November 2026. Depending on the regulator's eventual findings and applicable powers, outcomes could affect compliance obligations or licensing arrangements. Tuas (ASX:TUA) indicated that the Subsidiary would address the notice. Until the process concludes, precise consequences cannot be assumed.

FY26 Revenue and Subscriber Expansion

For the year ended 31 July 2026, Tuas recorded SGD 187.6 million in revenue, compared with SGD 151.3 million the previous year. Statutory Earnings before interest, tax, Depreciation and Amortisation were SGD 80.1 million, while underlying EBITDA was SGD 83.8 million after excluding identified M1 due-diligence costs. Net profit after tax increased to SGD 26.0 million from SGD 6.9 million.

Active mobile services reached approximately 1.458 million, up from 1.254 million at the previous year-end. The group reported gross mobile average revenue per user of SGD 9.42 and around 62,000 fibre subscriptions. These measures show an expanding service base, although pricing and customer retention will continue to influence the quality of revenue earned by Tuas (ASX:TUA).

Cash Resources and the Abandoned M1 Transaction

Net operating cash generation reached SGD 91.3 million in FY26 and spending on plant and equipment was SGD 38.6 million. At year-end, Tuas held SGD 479.8 million in cash and SGD 18.9 million in term deposits. Part of that balance arose from a Capital raising undertaken for a proposed Acquisition rather than from telecommunications trading alone.

The company had intended to acquire M1, but the proposed transaction did not proceed after regulatory scrutiny interrupted the review and the contractual deadline passed. Tuas (ASX:TUA) subsequently had to consider the use of capital originally raised to support that acquisition. Until the board announces a decision, potential uses of these funds remain alternatives rather than committed plans.

Competition, Network Obligations and Outlook

Simba operates in a competitive Singapore telecommunications market, where subscriber acquisition, network coverage and service pricing interact. The company has discussed developing new products during FY27 and continued EBITDA growth, but these are forward-looking objectives rather than guaranteed outcomes.

Additional Cybersecurity responsibilities also affect spending. Tuas (ASX:TUA) indicated that obligations associated with critical information infrastructure status could require SGD 15 million to SGD 30 million in additional capital and operating expenditure in FY27. The eventual regulatory response, network Investment and commercial performance will determine how these priorities are balanced.

Key Insights

Tuas (ASX:TUA) achieved higher FY26 revenue, subscriber numbers and profit, supported by its Singapore telecommunications operations. The October show-cause notice introduces a separate licensing and compliance uncertainty. Decisions concerning the unused M1 acquisition funds and extra network expenditure also remain relevant to the group's next reporting period.

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