Tuas Grows Revenue 26% to S$92M as 1.4M Mobile Subscribers Drive Margin Gains
Key Takeaways
Tuas Limited's H1 FY26 results show 26% revenue growth to S$91.9 million, a 523% surge in underlying NPAT, and a mobile subscriber base exceeding 1.4 million — making the Tuas Half Year Results 2026 one of the most compelling telecoms updates on the ASX.
- Tuas reported 26% revenue growth to S$91.9 million in H1 FY26, with underlying EBITDA rising 27% to S$42.1 million and EBITDA margin expanding to 46%.
- Underlying net profit after tax surged 523% year-on-year to S$18.7 million, reflecting strong operating leverage as the subscriber base scales.
- Mobile subscribers grew from 1.16 million to 1.4 million while gross mobile ARPU held stable at S$9.61, demonstrating pricing power alongside subscriber expansion.
- The broadband segment delivered explosive growth, with active services jumping from 14,347 to 46,133, supported by Speedtest recognition for Singapore's fastest download speeds.
- Tuas held S$477.97 million in cash following an AUD$430 million equity raise, with the pending M1 acquisition set to make the combined entity Singapore's second-largest mobile operator.
Tuas delivers 26% revenue growth as subscriber base continues rapid expansion
Tuas Limited (ASX: TUA) has reported its H1 FY26 results, revealing sustained momentum across both mobile and broadband segments for the six months ending 31 January 2026. Revenue climbed 26% to S$91.9 million compared to the prior corresponding period, while underlying EBITDA reached S$42.1 million, representing 27% growth year-on-year.
The telecommunications operator’s underlying EBITDA margin improved to 46% from 45% in H1 FY25, demonstrating operating leverage as subscriber growth translates into profit expansion. Statutory EBITDA came in at S$31.6 million, which includes pre-acquisition costs related to strategic activities. Net profit after tax rose substantially to S$18.7 million on an underlying basis, driven by improved operational performance and disciplined cost management.
| Metric | H1 FY25 | H1 FY26 | Change |
|---|---|---|---|
| Revenue | S$73.2M | S$91.9M | +26% |
| Underlying EBITDA | S$33.1M | S$42.1M | +27% |
| EBITDA Margin | 45% | 46% | +1pp |
| Underlying NPAT | S$3.0M | S$18.7M | +523% |
The financial performance signals that operating leverage is working in Tuas’s favour. The company is converting subscriber growth into margin expansion rather than sacrificing profitability for market share, a critical dynamic in telecommunications where fixed infrastructure costs typically decline as a percentage of revenue once scale is achieved.
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Mobile subscriber base surges past 1.4 million active services
Tuas’s mobile services reached 1.4 million active subscribers during H1 FY26, continuing a strong growth trajectory from 1.16 million in the prior corresponding period. Importantly, gross mobile ARPU (Average Revenue Per User) remained stable at S$9.61, virtually unchanged from S$9.60 in FY25.
The combination of rapid subscriber acquisition without ARPU erosion indicates Tuas is attracting quality customers rather than competing solely on price. This stability suggests the company’s value proposition resonates with consumers willing to pay for service quality and network performance, rather than gravitating to the lowest-cost provider.
For investors, stable ARPU alongside subscriber expansion demonstrates pricing power, a critical metric in telecommunications where companies often sacrifice margins to win market share. Tuas appears to be avoiding this trap, instead building a customer base that values service quality over rock-bottom pricing.
Broadband segment experiences explosive growth
The broadband segment delivered exceptional growth, with active services reaching 46,133 subscribers compared to 14,347 in H1 FY25. This more than threefold increase positions broadband as an increasingly material revenue contributor beyond the core mobile business.
Management highlighted that Tuas’s SIMBA broadband service was recognised by Speedtest as offering the fastest download and most reliable internet speed in Singapore during H2 2025. The company supports its premium positioning with hardware differentiation, including a free WiFi 7 router with 10Gbps broadband plans.
The broadband value proposition includes:
- 10Gbps download speeds on flagship plans
- Free eero Pro 7 WiFi 7 router (retail value S$599.99) with 10Gbps service
- Dual 10 GbE ports for high-performance connectivity
- Tri-band technology (2.4GHz, 5GHz, 6GHz) for optimal device distribution
- Free home phone line included with two-year contracts
Service quality recognition combined with aggressive subscriber growth suggests Tuas is successfully competing against established broadband incumbents by targeting quality-conscious consumers. This diversifies revenue beyond mobile while leveraging the company’s network infrastructure investment across multiple services.
Understanding telecommunications unit economics
For investors new to telecommunications, two metrics help evaluate operational efficiency: ARPU and EBITDA margin. ARPU measures average revenue generated per customer, whilst EBITDA margin reveals how much revenue converts to profit after operating expenses but before interest, tax, depreciation, and amortisation.
Growing subscribers whilst maintaining ARPU demonstrates pricing power. If ARPU declines as subscribers increase, the company may be buying market share through unsustainable discounting. Tuas’s stable ARPU signals healthy customer acquisition economics.
EBITDA margin expansion whilst scaling reflects fixed-cost leverage inherent in telecommunications businesses. Once network infrastructure is deployed, adding subscribers increases revenue without proportionally increasing costs. Tuas’s margin improvement from 45% to 46% whilst adding hundreds of thousands of subscribers indicates the business model is maturing profitably.
Strong cash position following successful capital raise
Tuas held cash and term deposits of S$477.97 million at 31 January 2026, bolstered by an AUD$430 million equity raising completed during the half. The company generated S$50.1 million in operating cash flow whilst investing S$18.8 million in capital expenditure during the period.
The substantial cash position provides flexibility for organic growth and strategic opportunities, including the pending M1 acquisition. Operating cash flow generation alongside profit growth demonstrates the business is converting earnings into actual cash rather than relying on accounting profits unsupported by cash generation.
Capital expenditure of S$18.8 million during the half remained well below operating cash flow, leaving room for continued network investment whilst maintaining positive free cash flow. This financial discipline positions Tuas to fund growth without constant capital market reliance.
M1 acquisition update
Management stated that Tuas and Keppel are working positively towards completing the M1 acquisition transaction. The combined entity would become Singapore’s second-largest mobile operator, materially transforming Tuas’s competitive position in the market.
Strategic Significance
The combined entity will be Singapore’s 2nd largest mobile operator, representing critical telecommunications infrastructure consolidation in the city-state.
Joint engagements with the Infocomm Media Development Authority (IMDA), Singapore’s telecommunications regulator, are ongoing. Management described the transaction as important for critical infrastructure, though timing for completion remains subject to regulatory processes.
Successful completion would substantially increase Tuas’s subscriber base, network assets, and market position. However, investors should note that regulatory approval remains a prerequisite, and integration execution will be critical to realising synergies.
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FY26 outlook and capital expenditure guidance
Management provided guidance for mobile and broadband capital expenditure of S$50 million to S$55 million for FY26. The company emphasised its focus on strengthening its position across both mobile and fibre broadband segments.
Notably, Tuas exceeded IMDA 5G coverage obligations ahead of the 31 December 2026 regulatory deadline. Meeting network obligations early demonstrates execution capability whilst potentially reducing future regulatory risk.
Key FY26 priorities include:
- Continuing subscriber growth across mobile and broadband segments
- Maintaining service quality leadership in both markets
- Executing network capital expenditure within S$50-55 million guidance
- Progressing M1 acquisition through regulatory processes
- Converting subscriber growth into sustained margin expansion
The capital expenditure guidance provides visibility on investment requirements whilst 5G milestone achievement demonstrates Tuas can execute network deployment effectively. For investors, the combination of controlled capex, strong cash generation, and continued subscriber growth suggests the business model is scaling sustainably rather than requiring ever-increasing capital injections to maintain momentum.
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