Tuas Ltd (ASX: TUA) shares are on the move on Wednesday morning.
In early trade, the ASX 200 telco stock is up 7% to $6.42.
This follows the release of its half-year results for FY 2026.
Why is this ASX 200 telco stock rising?
The company’s shares are gaining after Tuas reported strong growth across its key financial metrics for the first half of FY 2026.
Management advised that this was driven by the continued expansion of its subscriber base in Singapore.
According to the release, revenue increased to S$91.9 million, representing an increase of 25.5% on the prior corresponding period.
Also growing strongly were its underlying earnings. The ASX 200 telco stock’s underlying EBITDA came in 27.2% higher year on year at S$42.1 million. However, statutory EBITDA was down slightly to S$31.6 million.
Net profit after tax rose to S$8.2 million on a statutory basis and by over 500% to S$18.7 million on an underlying basis.
Management highlighted that the result reflects sustained improvement across all key financial metrics, supported by disciplined cost management and operating leverage.
Subscriber growth
Tuas’ strong performance was underpinned by rapid growth in its mobile and broadband subscriber base.
It revealed that active mobile services increased 21.7% to over 1.4 million, continuing a strong upward trend over recent periods.
Meanwhile, broadband subscribers surged to more than 46,000, highlighting strong traction in this newer segment.
Management also noted that average revenue per user remained stable at S$9.61, indicating that growth is being driven primarily by customer additions rather than pricing changes.
Strong balance sheet
The company ended the period with a significantly strengthened balance sheet following a capital raising.
Tuas reported cash and term deposits of S$477.9 million at the end of the half, boosted by approximately A$430 million raised through an equity issue.
This provides the ASX 200 telco stock with substantial financial flexibility to fund future growth initiatives.
Business update
Tuas continues to make progress in its core Singapore market.
The company revealed that it has exceeded its 5G coverage obligations ahead of schedule, positioning it strongly in the competitive mobile market.
It also highlighted leadership in fibre broadband service quality and hardware, supporting continued growth in that segment.
Outlook
Looking ahead, management expects to continue strengthening its position across both mobile and broadband markets.
The company has guided to capital expenditure of between S$50 million and S$55 million for FY 2026 as it invests in further network expansion and capability.
In addition, Tuas provided an update on its proposed M1 acquisition, noting that both parties are progressing positively and engaging with regulators as part of the approval process. The combination will make Tuas the second-largest mobile operator in Singapore.
Overall, the result highlights strong momentum for the business as it continues to scale its operations and grow its market share in Singapore.
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