How Will Tuas’s $1.43B M1 Deal Transform Singapore’s Telecom Market?
Tuas Limited delivered a strong turnaround in FY25 with a 29% revenue increase and a return to profitability, while announcing a conditional acquisition of Singapore’s M1 Limited that could reshape its market position.
- Revenue up 29% to S$151.3 million
- Profit of S$6.9 million versus prior year loss
- Mobile subscribers grow to 1.254 million; fibre broadband reaches 25,600
- Conditional acquisition of M1 Limited for S$1.43 billion announced
- FY26 capital expenditure guidance of S$45-55 million on 5G and fibre broadband
Robust Financial Turnaround
Tuas Limited has reported a significant financial turnaround for the year ended 31 July 2025, posting revenue of S$151.3 million, a 29% increase from the previous year. The company returned to profitability with a net profit of S$6.9 million compared to a loss of S$4.4 million in FY24. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 38% to S$68.4 million, underscoring improved operational efficiency and market traction.
Cash flow from operations remained strong at S$81.2 million, supporting ongoing investments in network infrastructure and technology upgrades. The company’s net tangible assets per share increased to S$0.72, reflecting a solid balance sheet foundation.
Subscriber Growth and Network Expansion
At the core of Tuas’s growth is its Singapore-based Simba Telecom, which expanded its active mobile subscriber base from 1.05 million to 1.25 million during the year. Fibre broadband subscribers also grew to 25,600, boosted by the launch of 10 Gbps fibre plans targeting residential customers.
Simba continued to upgrade its mobile network, enhancing 5G coverage across 474 sites and expanding roaming options, which contributed to a competitive average revenue per user (ARPU) of S$9.60. These initiatives have positioned Simba as a value-driven player in Singapore’s competitive telecommunications market.
Strategic Acquisition of M1 Limited
A pivotal development post-year-end was the announcement of a binding agreement to acquire M1 Limited, excluding its ICT business, for S$1.43 billion on a debt-free, cash-free basis. M1 is a well-established operator with a strong brand and customer base, and this acquisition is expected to be transformative for Tuas, significantly increasing scale and market presence.
The transaction is subject to regulatory approvals and other conditions precedent, with the company having raised approximately AUD$385 million through an institutional placement to support the deal. An additional share purchase plan targeting existing shareholders aims to raise around AUD$50 million.
Outlook and Capital Investment
Looking ahead to FY26, Tuas plans to continue investing heavily in its network, with capital expenditure guidance of S$45-55 million focused on 5G and fibre broadband enhancements. The company intends to operate a two-brand strategy post-acquisition, maintaining Simba’s value-oriented plans alongside M1’s premium offerings.
While the M1 acquisition presents integration and regulatory risks, the Board views the deal as a key step in driving future growth and shareholder value.
Governance and Remuneration
The company’s leadership remains stable, with Executive Chairman David Teoh and CEO Richard Tan steering operations. The remuneration framework aligns executive incentives with performance, including a share-based performance rights plan linked to EBITDA targets and individual contributions.
No dividends were declared during the year, reflecting the company’s focus on reinvestment and growth.
Bottom Line?
Tuas’s FY25 results and the pending M1 acquisition set the stage for a reshaped Singapore telecom landscape, but execution and regulatory hurdles remain key watchpoints.
Questions in the middle?
- Will the M1 acquisition receive timely regulatory approval and close as planned?
- How will Tuas integrate M1’s operations and brands without disrupting service quality?
- What impact will increased scale have on Tuas’s competitive positioning and profitability?
