I would now like to hand the conference over to Mr. Richard Tan, CEO. Please go ahead.
Thank you. Good morning, and thank you for joining us. I'm Richard Tan, Chief Executive Officer of SIMBA Telecom, the principal operating entity of the Tuas Group. Also on the call today are Mr. David Teoh, Executive Chairman of Tuas Limited, and Mr. Harry Wong, Chief Financial Officer of SIMBA Telecom. It's a pleasure to present the financial results for Tuas Limited for the fiscal year ended 31st July 2025, covering the period which started 1st August 2024. Let me briefly outline today's agenda, as shown on slide two. We'll begin with Harry, who will walk through the financial performance and key metrics for the year. I'll then provide an update on our operational progress, strategic initiatives, and outlook for FY 2026. We'll conclude with a Q&A session to address any questions you may have. Please note that all financial figures discussed today are denominated in Singapore dollars.
With that, I'll now hand over to Harry to take us through the numbers.
Good morning, everyone. My name is Harry Wong, CFO of SIMBA Telecom. I'll be presenting the financials of the Tuas Group. On slide three, you'll see that we achieved a notable improvement in the financial results during FY 2025 when compared to FY 2024. Revenue for the year is SGD 151.3 million, up from SGD 117.1 million last year. EBITDA increased 38%, up from SGD 49.7 million in the prior year to SGD 68.4 million. We achieved a full-year positive net profit after tax. Net profit after tax of SGD 6.9 million is a significant improvement on the prior year's loss of SGD 4.4 million and represents a major milestone for the group. Next, we look at the revenue and EBITDA on slide four. Revenue for the year ending 31st July 2025 increased 29% compared to FY 2024. With the increasing scale of the business, EBITDA margin has improved to 45% of revenue.
Gross output for the year was 9.6%. The key drivers of this EBITDA uplift continue to be an increased subscriber base and an expanded plan mix, catering to different customers' needs. Our plans include generous roaming data at every price point. Slide five shows our sustained mobile subscriber growth since FY 2022. As of 31s July 2025, we have about 1.254 million subscribers, representing a 19% increase over the past one year. We estimate SIMBA's mobile subscriber market share to be around 12%. Slide six shows the mobile... Slide six shows the broadband subscriber base. As of 31st July 2025, we have approximately 25,600 active services, adding 22,000 subscribers over the year. We proceed to the cash flow on slide seven. We continue to show positive cash flow. Opening cash and term deposit balance was SGD 55.3 million. Net cash generated from operating activities was SGD 81.2 million.
The main cash outflow comes from acquisition of plant and equipment and intangible assets of SGD 55 million, largely mobile network and some fixed broadband infrastructure. This brings the ending cash and term deposits to SGD 80.7 million as of 31 July 2025. Again, positive cash flow after CapEx for the year is a welcome achievement. With this, I will let Richard proceed with the business updates.
Thank you, Harry. The Singapore mobile market remains highly dynamic. Over the past financial year, SIMBA has focused on delivering enhanced value across all price points. This strategy has resonated strongly with consumers, as reflected in our continued subscriber growth. Notably, our SGD 12 plan has gained significant traction due to its generous APAC roaming inclusions. Coupled with free IDD, our portfolio of plans appeal to the mass market, frequent travelers, and migrant workers alike. We have broadened our retail footprint to increase accessibility of SIMBA products. This includes island-wide availability at 7-Eleven convenience stores and sales counters across the four Changi Airport terminals. These strategic placements have driven growth in prepaid activations, particularly among inbound travelers. To support our expanding customer base, SIMBA continues to invest in network capacity and user experience.
Our infrastructure enhancements are complemented by the rapid expansion of our 5G coverage, which remains on track to exceed IMDA's regulatory benchmarks. Slide nine covers our fiber broadband business, which, although still in its early days, is scaling faster, driven by a clear and compelling value proposition, which includes 10 Gb trough 10 Gb per second speed, lowest market price, latest Wi-Fi 7 technology, no upfront cost, free ONT and router. This simplified high-value offering is resonating with consumers, and we intend to build on this momentum. Moving to slide 10. On 11th August 2025, we announced the proposed 100% acquisition of M1 Limited, excluding its ICT business, for an enterprise value of SGD 1.43 billion on a debt-free and cash-free basis.
This transaction will be funded through existing cash reserves, AUD 385 million completed equity raise, SGD 1.1 billion in fully underwritten acquisition debt financing, up to AUD 50 million via a share purchase plan, which is expected to close tomorrow, 25th September 2025. A key step required prior to completion of the acquisition is to be approved by the Singapore regulator, the Infocomm Media Development Authority, which has responsibility for regulating competition issues in the telecommunications industry in Singapore. This process requires an application to be made by the parties to the consolidation. Together with M1, we have prepared and submitted to the IMDA the long-form consolidation joint application, and we are hoping to get regulatory approval in the coming months. Finally, the business outlook. The financial year has begun on a firm note, with sustained growth in both mobile and fiber broadband segments in line with our expansion.
SIMBA's standalone CapEx is projected to be between SGD 50 million and SGD 55 million for the full year. We will also remain focused on margin optimization and disciplined cash management. I will now hand it back to the moderator for the Q&A session.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question today comes from William Park with Citi. Please go ahead.
Hi, thank you, David, Richard, and Harry, for taking my question. Hopefully, this one's for, firstly, this one's for David. Just a big picture question around the technology and network engineering that you've been able to sort of implement in Singapore. Could you just step through whether that's given you sort of a leg up in starting up and expanding SIMBA in Singapore versus, say, when you used to run TPG Telecom back in Australia?
Maybe I will handle this question, Richard here. I think it's better that Richard handles it because he is more familiar than me. So, Richard, thanks. Okay. Thanks, David. The technology that we used, obviously, was, or rather, let me take one step back. TPG, it started as TPG, and obviously we transitioned to SIMBA, as we are all aware. We built the entire platform, both hardware, software, and the network, without any legacy. That has given us, obviously, an advantage because there were a lot of issues that we did not have to deal with. Entirely, we started with 4G, and a lot of the equipment that we made was easily upgradable to support 5G. In summary, we are in a very, very good position, and this has obviously been reflected in the growth, as well as our CapEx efficiency and OpEx efficiency.
Not quite sure if I've addressed your question, but please feel free to, you know, jump in.
Thanks, Richard. That's very clear. Can I just ask about the EBITDA margin? Clearly, 45.2% for the full year is sort of in line with what you guys have delivered in the first half. I'd imagine in the second half, there would have been costs associated with the M1 acquisition. Could you provide some color around the quantum of those acquisition costs that you have incurred? I'm trying to get to sort of an EBITDA margin on a like-for-like basis without these acquisition costs, and whether that's sort of a floor margin that you guys are thinking about for the SIMBA business going forward?
As you know, it's still early days because a lot of the work that was done was previously on the due diligence part of it, which led to the announcement, which again, all of you are aware about. We don't give the breakdown of costs, but obviously what we will do moving forward is ensure that analysts as well as investors have clarity in terms of how the business is trending without the other costs associated with the acquisition. That's something that we'll provide information on moving forward.
Thank you. That would be very helpful. Just one last one from me is just around broadband output in the second half. Appears to have stepped up a fair bit versus the first half. Just wondering what's driven this, particularly given, you know, with all these promotional activities that's going on in Singapore and your competitors taking a pretty aggressive pricing strategy. Just wondering, you know, what's driven that uplift in output? I know you guys can provide sort of a margin profile for mobile and broadband separately, but just if you could sort of direct us around like how we should be thinking about broadband margin, you know, sort of going forward. Thank you.
Okay, it's a good question. I think it is clear that we have a very simple product with regards to fiber broadband. Originally, we started at SGD 19.99, and now it's SGD 29.95. What we are trying to say is that we have been transitioning a lot of our customers from the old plan, which was at 2.5 Gb per second, to the 10 Gb per second. That obviously is driving an increase in output. That's pretty much it.
Thank you very much.
Your next question comes from [Hosseini Safi with Mobank]. Please go ahead.
Yeah, hi. Good morning and thanks for the opportunity. I have several questions to go through one by one. First is that still on the acquisition side, I understand that a part of the M1 network is with Antina, which is a joint venture with the startup. I just wanted to understand that do you have any preliminary discussion with the startup on that side, how you are going to also integrate the SIMBA network onto that network and potentially sharing on the cost side and things like that? If you can give your view on that side, that would be helpful.
Okay, thanks for your question. As mentioned, we are still in the early phases as far as the consolidation application is concerned. With regards to Antina, it's too early to comment right now. Obviously, what we have observed is that Antina has served M1 well in terms of its 5G strategy. Given that we are in the process of engaging the Infocom Media Development Authority on the long-form consolidation application, I think that's as much color I'm able to provide.
Understood. Maybe then moving on to the potential approach of the enlarged SIMBA post-consolidation. I just wanted to understand that given the competition in the market and given how the other MVNOs and the flanker brands have put the pricing down, how should we see the competition evolving post-consolidation? Will the enlarged SIMBA, I mean, is the market share going forward in your view to grow in this market, or do you think that there's room for prices to go up? I also wanted to get your view on, are you comfortable with your market share, the enlarged market share at around 25% or so? Would you like to maybe try to inch it up forward?
Okay. I note that you refer to the enlarged market share. I think that what we can say right now is that, firstly, we don't really talk a lot about competition. We focus more on our own growth. SIMBA standalone, as indicated earlier in my presentation, the year has begun on a firm note, and we are progressing in terms of growing our subscriber base. As far as M1 is concerned, they have their strength in the postpaid handset bundling, and we note that they are obviously very active in that area as well. On a combined basis, early days, can't really say much, too premature. I would like to leave it at that.
Understood. Thanks. I will get back into the...
Your next question comes from [Darren Odell] with TELUS Capital. Please go ahead.
Hi, thanks, guys. I'm very impressed with the strong result. Just a couple of questions. Just on numbers, I did notice that the gross margin came off in the second half of the first half. Just wondering the option there and what we should be thinking about going forward. On top of that as well, the broadband adds in the second half, by going up, were one of the highest first half adds. Trying to give you a seasonal outlook of how should we think about run rates going into the next financial year as well.
Sorry, you're coming in rather muffled, so I would have to guess what your questions are about. I think you're asking about growth margins of second half versus first half. As you know, we've been working hard to maintain our growth margins, and as I've always indicated in all past presentations, we want to continue to grow as much as we can. Obviously, as we move from quarter to quarter or half to half, we will invest to ensure that we keep up with our growth momentum. That has always been our priority. Now, with regards to broadband ads, could you please repeat your question again?
Just in the first half, the number was higher than the second half. I was just thinking of like a monthly number. Why that difference was from the first half to the second half?
Some of it is seasonality, and as I've said, it depends on the promotions that we run. At this moment, we are comfortable with the growth rates with regards to fiber broadband.
Okay, thanks very much.
Your next question comes from James Bales with Morgan Stanley. Please go ahead.
Hi guys. My question relates to the previous one, just on the outlook commentary on mobile and broadband subs continuing to grow. Is that referring to the percentage growth rate or absolute subs added?
If you look at our track record for the past five years and how we're trending in terms of growth rate, I would just like to leave it that that's the continued path, that trajectory that we, at least the early indications, are indicating. I'm not going to talk whether it's an absolute number or in terms of percentage, but if you look at the trend itself, then we are progressing as what we have done for the past five years.
Okay, got it. On one of the slides, you highlight the value proposition in your SGD 12 a month mobile plan. The output actually declined in the second half versus a year ago and versus the first half. Can you maybe help us understand why, when that value proposition looks so strong for the higher price plan, you've seen output go down?
I don't think output went down noticeably, right? Especially in this highly dynamic market. What we have noticed is that there are, for example, increased popularity for our SGD 12 plans. That's obviously very good for SIMBA. We are also continuing to gain significant traction for our senior plans. All in all, it all balances out to the output, which we have presented as SGD 9.60.
Okay, got it. Maybe just on CapEx, you've called out standalone CapEx of SGD 50 million- SGD 55 million. I guess we have to sort of figure out what that could look like in a post-M1 Limited completion world. If that deal does complete, how material would the change in CapEx profile be?
It's really hard to comment right now because, as I've said, while we have done some analysis, it's still very much in the early stages. We would have to understand the M1 network architecture, get a deeper understanding of it, and see how we can derive the synergies. One thing's for sure, we will not compromise on network quality or user experience, either on a standalone basis or combined basis. We are very watchful in terms of how we spend CapEx and OpEx. We aim to do the best. As I've said, from what I can see right now is that on a standalone basis, it's SGD 50 million-SGD 50 million, SGD 50 million-SGD 55 million. That's in line with the capacity needed to support our subscriber growth.
Perfect. Thanks, Richard.
Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Nick Harris with Morgans. Please go ahead.
Good morning. Thanks very much for your time, David, Richard, and Harry, and the opportunity to ask questions. Just my first one. I know, Richard, you obviously just commented that it's very early days with respect to M1, but could you give us some high-level thoughts from what you've seen today just to try and help us understand the similarities or differences between M1's telco network and its systems versus SIMBA? I guess really what I'm trying to get to is there an opportunity there for you to leverage SIMBA's cost advantage into M1? Anything you can say around that would be great.
I will share with you what I can because obviously both companies have built up quite an expensive 4G network. I think you heard earlier in the call about Antina. Antina handles the 5G rollout for both M1 a nd StarHub. There are synergies obviously on the 4G mobile network that can be derived as far as the radio network is concerned, the transmission, as well as the core network because equipment-wise, network-wise, there would be significant overlap. However, having said that, the overlap is in fact very, very complementary because, like for example, spectrum is extremely complementary as well. On the 900 MGz, we can combine our 10 MGz with M1 's 5 MGz. That will deliver a very good foundation for mobile coverage and quality. I'm sorry to repeat myself again, it's really early days.
For M1 and SIMBA Telecom coming together, we are really excited about the opportunity.
Thank you. Maybe just an immediate question. Just before, I looked at the M1 accounts. They've historically generated some revenue out of Singapore. I was just trying to understand if that revenue is related to their ICT business or their telco business. Obviously, the logic being, you know, will Tuas will SIMBA have some telco revenue outside of Singapore? That's it for me. Thanks, Richard.
Yes, the overseas revenue is part of the ICT business that will be spun off.
Thanks again.
Your next question comes from [Hosseini Safi with Mobank]. Please go ahead.
Yeah, sure. Thanks again. I have some follow-ups, a couple of follow-ups. First, on the spectrum side, Richard, if you can help that because if we look at consolidations across the globe, at the time of consolidation, companies emerge or do end up giving a little bit of a spectrum back to the regulator. Do you see that as a potential outcome with this merger? Do you think that it could be one of the outcomes? That's question number one. The second question is, I understand that it is early days, but if you can give us some targets on the synergies, which you can potentially get on the back of network consolidation. Thank you.
Okay. I can't comment on spectrum because that would be under consideration, obviously, by the regulator. On a combined basis, you will see that the spectrum distribution is in fact very fair across three on a combined basis. Other than that, I really can't say much with regards to spectrum nor your other question with regards to targets on synergies. Appreciate the questions, but as I've said, when the consolidation happens, then hopefully we aim to provide more color.
Got it. Thank you.
There are no further questions at this time. I'll now hand back to Mr. Tan for closing remarks.
Thank you all for your time and for engaging with our business update. The Board and management of Tuas Limited deeply appreciates your continued support. We look forward to delivering further value and growth in the months ahead. Thank you once again.
That does conclude our conference for today. Thank you for participating. You may now disconnect.