Tuas Ltd (ASX: TUA) shares are having a very strong session on Tuesday.
In morning trade, the ASX telco stock was up as much as 15% to $4.86.
This follows the release of the company's full year results. Let's see how the company performed (in Singapore dollars).
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ASX telco stock jumps on FY 2024 results
- Revenue up 36% to $117 million
- EBITDA up 60% to $49.7 million
- Net loss improved 71% to $4.4 million
- Net cash improved to $55.3 million
What happened during the year?
For the 12 months ended 31 July, the Singapore-based telco reported a 36% increase in revenue to $117 million.
This was driven by a 29% or 234,000 increase in mobile active services to 1,053,000 and a modest lift in mobile average revenue per user to $9.68.
The ASX telco stock's EBITDA margin improved from 36.1% in FY 2023 to 42.5% in FY 2024. Combined with its increased revenue, this underpinned a 60% jump in EBITDA to $49.7 million.
However, this wasn't quite enough for Tuas to be profitable on the bottom line. It recorded a net loss of $4.4 million, which is a 71% improvement on last year's loss of $15.3 million.
The company generated net cash from operating activities of $60 million in FY 2024 compared to $40 million in FY 2023. Though, much of this was reinvested, with $48.6 million spent on plant & equipment and intangibles relating to Simba's mobile and fibre broadband network.
Nevertheless, the ASX telco stock achieved positive cashflow, exiting the financial year with cash and term deposits of $55.3 million compared to $44 million last year.
Management advised that in FY 2025, it will focus on the growth of its 5G and fibre broadband services, and on the continued introduction of attractive value plans to grow subscribers. It expects to incur capital expenditure in the range of $45 million to $55 million for the financial year.
FY 2025 outlook
Possibly giving the ASX telco stock a big lift is management's outlook for the year ahead.
It is expecting FY 2025 to be the year that it achieves its maiden net profit after tax.
Underpinning this will be its continued push for more broad-based mobile subscriber growth and its focus on growing 10Gbps residential fibre broadband momentum.
Following today's gain, the Tuas share price is now up 115% since this time last year. As a comparison, Telstra Group Ltd (ASX: TLS) shares are up approximately 2% over the same period.
