Tuas Limited has reported a robust turnaround in FY25 with positive net profit and strong subscriber growth, alongside completing the strategic acquisition of M1 Limited. The company sets sights on further expansion amid regulatory review.
- FY25 revenue climbs 29% to S$151.3 million
- EBITDA rises 38% to S$68.4 million with 45% margin
- Positive net profit after tax of S$6.9 million achieved
- Completed S$1.43 billion acquisition of M1 Limited (ex-ICT businesses)
- FY26 outlook includes continued subscriber growth and S$50-55 million CAPEX
Strong Financial Turnaround
Tuas Limited has delivered a striking financial performance for the fiscal year ending July 31, 2025, marking a significant turnaround from previous years. The company reported revenue of S$151.3 million, a 29% increase over FY24, driven by a growing subscriber base and an expanded plan mix tailored to diverse customer needs. EBITDA surged 38% to S$68.4 million, lifting the margin to 45%, while net profit after tax (NPAT) turned positive at S$6.9 million, a notable recovery from losses in prior years.
Subscriber Growth and Service Expansion
Subscriber numbers have been a key growth driver, with mobile services surpassing 1.25 million active users and broadband services expanding rapidly to over 27,000 active connections. The company’s strategy to offer market-leading inclusions at each price point, alongside expanded distribution channels such as Changi Airport terminals and 7-Eleven stores, has strengthened its competitive position. Continued investment in network infrastructure, including 5G coverage expansion, underpins this growth trajectory.
Strategic Acquisition of M1 Limited
In a landmark move, Tuas completed the acquisition of M1 Limited’s core telecommunications business (excluding ICT operations) for an enterprise value of S$1.43 billion. This acquisition, announced in August 2025, was funded through a combination of existing cash reserves, a completed A$385 million equity raise, and S$1.1 billion in fully underwritten bank debt. The deal values M1 at an implied multiple of 7.3 times its EBITDA for the 12 months ending April 2025, excluding synergies. Regulatory approval from the Infocomm Media Development Authority (IMDA) is pending, with the company optimistic about clearance in the coming months.
Outlook and Capital Expenditure
Looking ahead to FY26, Tuas projects continued subscriber growth and plans capital expenditure between S$50 million and S$55 million to support network enhancements. The company’s fibre broadband offering, featuring a no-frills approach and value-added services like a free digital home phone line, is expected to maintain strong uptake. The integration of M1’s customer base and infrastructure will be a critical focus, potentially reshaping the competitive landscape in Singapore’s telecommunications sector.
Risks and Forward-Looking Considerations
While the results and acquisition mark a milestone for Tuas, the company cautions that forward-looking statements are subject to risks and uncertainties, including regulatory approval timelines and integration challenges. Investors will be watching closely to see how Tuas leverages its expanded scale and whether it can sustain its momentum in a highly competitive market.
Bottom Line?
Tuas’s FY25 success and M1 acquisition set the stage for a transformative year ahead, but regulatory and integration hurdles remain key watchpoints.
Questions in the middle?
- When will regulatory approval for the M1 acquisition be finalized?
- How will Tuas integrate M1’s operations and customer base effectively?
- What impact will the acquisition have on Tuas’s future profitability and market share?