Here’s why the Tuas (ASX:TUA) share price is leaping 10% to a record high on Friday

What’s in store for the company’s AGM?

| More on:
asx 200 share investor climbing up stairs of an upward trending red arrow into the sky and clouds

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

The Tuas Ltd (ASX: TUA) share price is rocketing to an all-time high today. This comes ahead of the telco provider’s planned annual general meeting (AGM) today, covering business updates and its FY22 outlook.

At the time of writing, Tuas shares are soaring 11.86% to a record high of $2.17. In contrast, the All Ordinaries (ASX: XAO) is up 0.14% to 7,546.5 points.

Key takeaways at Tuas’ AGM

The Tuas share price is rallying into unchartered territory as investors appear excited about the company’s growth plans.

Ahead of its AGM, Tuas highlighted in its pre-released presentation the group financials, including TPG Singapore’s performance.

The company achieved unaudited revenue of $12.2 million for the 3-month period ending 31 October 2021.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came to $3.7 million, compared to a loss of $2.4 million in the prior quarter. TPG Singapore accounted for an unaudited $3.8 million for Q1 FY22, reflecting the strong performance in a challenging environment.

Tuas closed at the end of October with a cash balance of around $92,000, including term deposits to secure bank guarantees.

Its subscriber base has continued to grow, with the latest figures reaching 435,000 subscribers as of 30 November. Average revenue per user (ARPU) stands at around $9.45.

In regards to the 5G updates, the company has been provisionally awarded a 5G spectrum in the 2.1 GHz spectrum auction. At a cost of $31.72 million, the deal comes with a 15-year license. This allows TPG Singapore to use this spectrum in operating its own 5G network in the country.

The rollout begins in the first quarter of 2022, with the launch of 5G standalone services in 2022.

Looking ahead, Tuas advised that its EBITDA for the year is above the current budget.

Tuas share price snapshot

In addition to today’s significant rise, the Tuas share price has jumped over 210% in the past 12 months. However, when looking at year-to-date performance, the company’s shares are up around 180%.

Tuas commands a market capitalisation of about $978.85 million, with approximately 463.91 million shares on its books.

Motley Fool contributor Aaron Teboneras 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Record Highs

a man in a supermarket strikes an unlikely pose while pushing a trolley, lifting both legs sideways off the ground and looking mildly rattled with a wide-mouthed expression.
Consumer Staples & Discretionary Shares

The Coles share price just smashed its all-time high. Here’s why

Coles shares just hit a new record high.

Read more »

An older man in a cowboy hat makes a trade on his phone while leaning up against the horse stall.
Record Highs

Amid today’s sell-off, guess which ASX All Ordinaries share just hit an all-time high

This stock is defying today's downturn.

Read more »

A young kid with dark glasses rocks out with a guitar.
Share Gainers

3 ASX 300 shares rocking new 52-week highs on Thursday

Which three shares hit multi-year highs today? Let's take a look.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Record Highs

What’s driving the Graincorp share price to all-time highs?

2022 has so far been good to the agribusiness' stock.

Read more »

Three children wearing athletic short and singlets stand side by side on a running track wearing medals around their necks and standing with their hands on their hips.
Record Highs

Despite today’s sell-off, these 3 ASX 300 shares are topping all-time highs

These 3 standouts have set the pace today.

Read more »

An older man with white hair in an Elvis-style white suit rocking out.
Record Highs

3 ASX All Ordinaries shares rocking all-time highs today

These ASX All Ords shares had a day to remember today...

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Lithium boom: Allkem share price hits record high on Q3 update

Allkem shares are on fire again today...

Read more »

rising asx share price represented by rocket ascending increasing piles of coins
Resources Shares

Here’s why this ASX All Ordinaries mining share leapt 8% to a new all-time high today

Zimplats shares hit a new record high today. Could high palladium prices be responsible?

Read more »