This ASX telco stock is jumping 15% (hint: it's not Telstra)

A strong result is getting investors excited on Tuesday.

| More on:
A happy woman stands outside a building looking at her phone and smiling widely

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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).

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.

Should you invest $1,000 in Woolworths Group Limited right now?

Before you buy Woolworths Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Woolworths Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Miner looking at a tablet.
Gold

Newmont share price lifts off on first-quarter results

The ASX 200 gold stock is charging higher on Thursday.

Read more »

A man wakes up happy with a smile on his face and arms outstretched.
Healthcare Shares

ResMed shares jump 8% on strong Q3 update

It was yet another strong quarter from this high-quality company.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Up 53% in a year, why is this ASX 200 financial stock leaping higher again today?

Investors are sending the ASX 200 financial stock soaring on Wednesday. Let’s see why.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Why is this ASX 200 uranium stock rocketing 17% on Wednesday?

The ASX 200 uranium stock is racing higher today. But why?

Read more »

Piggy bank at the end of a winding road.
Dividend Investing

Why this $44 billion ASX 200 dividend stock is pushing higher today

The ASX 200 dividend stock trades on a yield of 4.6%.

Read more »

Workers inspecting a gas pipeline.
Energy Shares

Why is the Santos share price racing ahead of the ASX 200 today?

Santos shares are enjoying a day of strong outperformance. But why?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Financial Shares

What's happening with the AMP share price on Thursday?

A lot of AMP shares are changing hands on Thursday. But at what price?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »