Tuas builds momentum after M1 deal falls away

Simba subscriber growth drives FY2026 earnings lift

Tuas’ Singapore telecommunications business produced the kind of operating momentum the abandoned M1 deal was meant to amplify. Revenue rose 24% to S$187.6 million in FY2026, while statutory profit attributable to shareholders jumped 277% to S$26.0 million. Underlying EBITDA increased 22% to S$83.8 million, or S$80.1 million on a statutory basis after S$3.7 million of M1-related due diligence and professional costs.

Active mobile services climbed from 1.254 million to 1.458 million over the year, while fibre broadband subscriptions reached approximately 62,000. Simba reported gross mobile average revenue per user of S$9.42, and the company said its underlying EBITDA margin held at about 45%. Operating cash flow reached S$91.3 million, allowing S$38.6 million of network and equipment investment while still generating positive cash flow after capital expenditure.

M1 acquisition lapses after regulatory clearance fails

The strategic transaction that shaped much of the year did not cross the regulatory line. Simba’s proposed acquisition of M1, excluding its ICT business, reached its 21 May 2026 contractual long-stop date without approval from Singapore’s Infocomm Media Development Authority, after the regulator suspended its review on 17 May pending an investigation. The agreement therefore lapsed without completion.

That leaves Tuas with a substantially larger balance sheet but no announced acquisition to absorb the capital raised for the deal. The company received S$322 million from institutional investors and a further S$42.5 million through its share purchase plan. The annual report says the board has made no decision on how the funds will be used; cash and term deposits stood at S$498.8 million at 31 July 2026.

Spectrum investigation remains the material overhang

Simba is continuing to cooperate with the IMDA investigation into potential unauthorised use of spectrum in the 2,300 MHz band. The filings say the regulator has indicated that any established misuse could constitute breaches of Singapore’s Telecommunications Act and Simba’s licence conditions, with possible enforcement action including financial penalties, licence modifications or termination, and personal consequences for individuals found to have been involved. The company says the nature, timing and amount of any financial consequences cannot presently be estimated reliably, and has recognised no provision.

The results presentation adds that the suspected use appears to have been intermittent and involved spectrum Simba had previously been authorised to use for specific purposes. That description does not resolve the regulatory question. Until the IMDA reaches a formal decision, the strong operating result sits alongside an exposure whose financial and operational consequences remain undefined.

FY2027 spending rises as product expansion continues

Tuas expects Simba to incur an additional S$15 million to S$30 million in FY2027 capital and operating expenditure to meet cybersecurity requirements applying to critical infrastructure operators in Singapore. Separately, mobile and broadband capital expenditure guidance is S$50 million to S$55 million. The company is also developing new products, continuing its 5G network densification and planning a transition towards 5G Standalone, while its fibre business is promoting 10Gbps connectivity and Wi-Fi 7 equipment.

There will be no dividend from FY2026. Tuas also ceased its Goose eSIM operations on 21 August, after year-end, and said it does not expect the shutdown to have a material effect on financial position or results. The next test is less about whether Simba can keep adding subscribers than whether the enlarged cash pool can be deployed without creating a new strategic or regulatory complication.