Highlights

  • Tuas reported FY2026 Revenue of S$187.6 million, increasing 24% compared with FY2025.
  • Underlying EBITDA increased 22% to S$83.8 million, while underlying net profit rose to S$29.6 million from S$6.9 million.
  • Mobile services increased approximately 16% to 1.46 million, while broadband subscriptions reached 62,000.
  • The proposed M1 Acquisition lapsed in May 2026 following the suspension of regulatory review, leaving the company awaiting the outcome of an investigation.

Tuas Limited (ASX:TUA) is an Australian-listed telecommunications company operating primarily through Simba Telecom in Singapore. The Business provides mobile services, fibre broadband and related connectivity products to residential and business customers. Its FY2026 financial performance reflected subscriber growth, increased service revenue and improved profitability, while regulatory uncertainty surrounding the proposed M1 acquisition remained an important consideration for its future operations.

FY2026 Revenue and Earnings Increase

Tuas reported revenue of S$187.6 million for the financial year ended 31 July 2026, increasing approximately 24% from S$151.3 million in FY2025.

Underlying EBITDA rose 22% to S$83.8 million from S$68.4 million.

The underlying EBITDA Margin remained approximately 45%, reflecting revenue growth alongside operating expenditure associated with network expansion.

Underlying net profit after tax increased to S$29.6 million from S$6.9 million.

Statutory EBITDA reached S$80.1 million, while statutory net profit increased to S$26.0 million.

The difference between statutory and underlying results primarily reflected expenses associated with the proposed M1 acquisition.

Simba Telecom Expands Mobile Subscriber Base

Simba's active mobile services increased from approximately 1.25 million at 31 July 2025 to 1.46 million at 31 July 2026.

The increase represented approximately 16% growth during FY2026.

Gross mobile average revenue per user reached S$9.42 for the financial year.

Management continued expanding network capacity and 5G coverage to support additional subscribers.

During FY2026, Simba upgraded more than 470 network sites, improving capacity across selected high-demand locations.

The company also expanded international roaming arrangements and introduced additional inclusions within its mobile plans.

Future mobile revenue will depend on subscriber retention, customer additions, pricing and competition across Singapore's telecommunications market.

Broadband Operations Record Subscriber Growth

Simba's fixed broadband business continued expanding during FY2026.

Active broadband subscriptions reached approximately 62,000 at 31 July 2026, compared with 26,000 a year earlier.

Broadband revenue increased as the company expanded its customer base and enhanced service offerings.

The business continued promoting its 10Gbps fibre broadband services, including packages incorporating Wi-Fi 7 equipment.

Simba also introduced additional broadband products targeting business customers.

The expansion provides an additional revenue source alongside mobile telecommunications services.

However, continued growth will depend on customer acquisition, service reliability, competitive pricing and network investment.

Proposed M1 Acquisition Lapses

In August 2025, Tuas announced that Simba had entered into an agreement to acquire M1 Limited, excluding its information and communications technology business.

The proposed transaction required regulatory approval from Singapore's Infocomm Media Development Authority (IMDA).

On 18 May 2026, IMDA announced that it had suspended its assessment of the proposed consolidation pending an investigation into possible unauthorised use of radio frequency spectrum by Simba.

The regulator indicated that its findings could be relevant to the proposed consolidation assessment.

The sale agreement subsequently reached its contractual long-stop date on 21 May 2026 without the necessary regulatory approval.

Consequently, the proposed acquisition lapsed and did not proceed.

Tuas confirmed that Simba was cooperating with the investigation and awaiting the regulator's formal decision.

The outcome may affect future regulatory obligations and corporate development opportunities.

Cash Flow and Balance Sheet Position

Tuas reported net operating Cash Flow of S$91.3 million during FY2026.

Investment in property, equipment and intangible assets totalled approximately S$39.3 million.

The company held cash and term deposits of S$498.8 million at 31 July 2026, compared with S$80.7 million in FY2025.

The increase largely reflected Capital raised to finance the proposed M1 acquisition.

During FY2026, Tuas raised approximately S$364.5 million before Transaction Costs through institutional and Shareholder funding arrangements.

Following the termination of the proposed acquisition, management indicated that no decision had been made regarding the allocation of the raised capital.

The company did not declare or pay a Dividend during FY2026.

Regulatory Compliance and Cybersecurity Investment

Simba was designated a critical information infrastructure operator in Singapore in September 2025.

This designation introduced additional cybersecurity and infrastructure protection requirements.

The company expects incremental capital and operating expenditure of S$15 million to S$30 million during FY2027 to meet these requirements.

The expenditure is separate from planned mobile and broadband network investment.

The ongoing investigation concerning spectrum usage also represents an additional regulatory uncertainty.

Any enforcement decision, operational conditions or remedial requirements will depend on the regulator's findings.

FY2027 Business Outlook

Tuas expects continued growth in its telecommunications operations through mobile and broadband product development.

Management plans mobile and broadband Capital Expenditure of S$50 million to S$55 million during FY2027.

Additional cybersecurity-related capital and operating spending is expected to total S$15 million to S$30 million.

The company intends to introduce new services while continuing to expand network capacity and customer connectivity.

Management has not provided a quantified FY2027 EBITDA or net profit forecast.

Future performance will depend on subscriber growth, pricing, operating costs, network Investment and regulatory developments.

Key Risks and Operational Challenges

Regulatory investigation: The outcome of the spectrum usage investigation may affect operating requirements and future corporate activity.

Telecommunications competition: Pricing pressure and customer switching could affect subscriber growth and revenue per user.

Cybersecurity expenditure: Additional compliance requirements may increase operating and capital costs.

Capital allocation: The use of funds originally raised for the M1 acquisition remains undecided.

Network investment: Ongoing spending is required to maintain coverage, service quality and capacity.

Subscriber retention: Future revenue growth depends on maintaining existing customers while attracting additional mobile and broadband users.

Key Insights

Tuas' FY2026 results reflected higher telecommunications revenue, subscriber growth and improved statutory and underlying profitability.

However, the termination of the proposed M1 acquisition and the unresolved regulatory investigation introduced uncertainty surrounding the company's strategic plans.

The FY2027 outlook centres on organic mobile and broadband growth, cybersecurity compliance and future capital allocation decisions.