Tuas shares jump after encouraging full-year results
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More news: Shares in Tuas jumped nearly 10% to $4.63 after the ASX-listed Singapore telecoms business posted a narrower full-year loss amid strong growth in subscriber numbers.
Citi analysts said the strong set of results was underpinned by strong growth in mobile subscribers and early encouraging evidence of 10Gbps broadband take-up in the residential market.
Citi has a $5.25 price target and a 'buy' rating on the stock.
What they said: "There is a lot to like and unpack here with 5.5% revenue beat and 13% EBITDA beat with clear trajectory to positive NPAT, which is what Tua is targeting for FY25," Citi said in a note.
Tuas narrows full-year loss
The news: TPG Telecom-spin off Tuas has narrowed its full-year loss on the back of improved margins from a growing subscriber base in Singapore.
The numbers: Net loss for the year to 31 July, 2024, narrowed to S$4.37 million ($4.95 million) from S$15.3 million. Earnings jumped nearly 60% to S$49.7 million, while revenue was up 36% at S$117.1 million. The company will not pay any dividend.
The context: The ASX-listed Tuas, which was spun out of TPG after it merged with Vodafone Hutchison Australia in 2020, operates the Simba Telecom network in Singapore.
The company saw sustained growth in its primary mobile business, with subscriber numbers up 29% to 1.053 million, helping it achieve positive cash flow during the year.
The company said it will focus on the growth of its 5G and fibre broadband services in FY25 and outlined capital expenditure plans of S$45 million to S$55 million for the current fiscal year.
The source: ASX announcement
