Tuas Limited - Financial Year 2024 Results Show Strong Growth and Reduced Losses
TUA (TUA) Share Update September 2024 Monday 23rd
Tuas Limited Reports Significant Financial Improvement for FY24
Tuas Limited (ASX: TUA) has released its financial year results for the period ending 31 July 2024, showing significant improvements in revenue and reductions in losses.
Instant Summary:
- Revenue increased by 36% to S$117.1 million.
- Net loss reduced by 71% to S$4.37 million.
- Loss per share improved by 71% to (0.94 cents).
- EBITDA increased by 60% to S$49.74 million.
- No dividends declared during the period.
- Net tangible assets per share increased to S$0.68 from S$0.66.
Financial Performance
Tuas Limited reported a revenue increase of 36%, reaching S$117.1 million for the financial year ending 31 July 2024, up from S$86.1 million in the previous year. This growth is attributed to the sustained expansion of its primary mobile business in Singapore.
The company's net loss for the period was significantly reduced by 71%, from S$15.3 million in FY23 to S$4.37 million in FY24. The loss per share also improved by 71%, decreasing from (3.29 cents) to (0.94 cents).
Operational Achievements
Tuas Limited achieved several operational milestones during the year. The number of mobile active services increased by 234,000, from 819,000 to 1,053,000. Additionally, the company's EBITDA saw a substantial rise of 60%, reaching S$49.74 million, compared to S$31.1 million in the previous year. The EBITDA margin improved from 36.1% to 42.5%.
Mobile Average Revenue per User (ARPU) also increased year-on-year from S$9.37 to S$9.68. The company generated net cash from operating activities amounting to S$60.0 million, up from S$40.0 million in FY23. Investments in plant and equipment and intangibles related to Simba's mobile and fibre broadband network totaled S$48.6 million.
Future Outlook
Looking ahead, Tuas Limited plans to focus on the growth of its 5G and fibre broadband services, as well as the continued introduction of attractive value plans to grow its subscriber base. The company expects to incur capital expenditure in the range of S$45-55 million for the financial year ending 31 July 2025.
The financial improvements reported by Tuas Limited are likely to have a positive impact on the company's stock price. The significant increase in revenue and reduction in losses demonstrate strong operational performance and efficient cost management. Investors may view these results as a sign of the company's growing market presence and potential for future profitability.
Investor Reaction:
Analysts are likely to react positively to Tuas Limited's financial results, noting the substantial improvements in revenue, EBITDA, and net loss reduction. The company's focus on expanding its 5G and fibre broadband services may also be seen as a strategic move to capitalize on emerging market opportunities.
Conclusion:
Investors should consider the positive financial performance of Tuas Limited and its strategic plans for future growth. The company's ability to increase revenue and reduce losses significantly positions it well for continued success. Monitoring the company's progress in expanding its 5G and fibre broadband services will be crucial for assessing long-term investment potential.