Regulatory Hurdles Ahead as Tuas Seeks to Acquire M1 Limited
Tuas Limited reported a robust FY25 with significant revenue and earnings growth, driven by subscriber gains in mobile and fibre broadband. The company is poised for a transformative leap pending regulatory approval of its acquisition of M1 Limited.
- FY25 revenue up 29% to S$151.3 million
- EBITDA increased 38% to S$68.4 million
- Active mobile subscribers reached 1.337 million in Q1 FY26
- Signed agreement to acquire M1 Limited, pending IMDA approval
- Secured fully underwritten debt financing for acquisition
Strong Financial Performance in FY25
Tuas Limited, the Singapore-focused telecommunications operator, showcased impressive growth in its 2025 fiscal year. Revenue surged by 29% to S$151.3 million, while earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed 38% to S$68.4 million. This performance was underpinned by a growing subscriber base across both its mobile arm, Simba Telecom, and its fibre broadband services, marking a successful first full year for the latter.
The company’s disciplined cost management and strategic investments in network capacity contributed to a robust EBITDA margin of 45%, reflecting operational efficiency amid a competitive market landscape.
Subscriber Growth and Market Position
As of the first quarter of FY26, Tuas reported approximately 1.337 million active mobile subscribers, representing steady quarter-on-quarter growth and a market share of 12.7% in Singapore’s mobile sector. Fibre broadband services also gained traction, with active connections rising to over 36,000, supported by attractive promotions such as complimentary WiFi 7 routers and digital voice lines.
Simba Telecom’s service quality, noted for top-tier speed and low latency, continues to resonate with consumers, bolstered by the annual addition of tens of thousands of new homes to the market.
Strategic Acquisition of M1 Limited
A pivotal highlight of the AGM was the announcement of a signed sales and purchase agreement to acquire all shares in M1 Limited’s business (excluding ICT operations) from the Keppel Group. M1 is Singapore’s third-largest mobile provider and a significant player in broadband and enterprise services.
The acquisition, now under review by Singapore’s Infocomm Media Development Authority (IMDA), is expected to substantially strengthen Tuas’s market position and operational scale. The regulatory approval process is underway following a public consultation period that concluded in early November, with the company expressing optimism for a timely green light.
Financial and Operational Outlook
To support the acquisition, Tuas has secured fully underwritten debt facilities from six major banks, demonstrating strong financial backing. The company’s capital expenditure for FY26 is forecast between S$45 million and S$55 million, focusing on expanding network capacity and preparing for integration synergies with M1.
Despite the competitive environment, Tuas’s management remains confident in sustaining growth momentum, leveraging deep operational expertise and a clear strategic vision to unlock future opportunities post-acquisition.
Governance and Shareholder Support
The AGM also saw strong shareholder endorsement of key resolutions, including the election of new director Joanna Ong and the ratification of a share issue, reflecting confidence in the company’s leadership and strategic direction.
Overall, Tuas Limited’s FY25 results and strategic moves position it as a dynamic player in Singapore’s telecommunications sector, with the pending M1 acquisition set to be a defining milestone in its growth trajectory.
Bottom Line?
With regulatory approval pending, Tuas’s next steps will be critical in shaping Singapore’s telecom landscape and investor returns.
Questions in the middle?
- When will IMDA announce its decision on the M1 acquisition?
- How will Tuas integrate M1’s operations and networks post-acquisition?
- What competitive responses might emerge from other Singapore telecom players?
