Simba confirms spectrum breach, Tuas Ltd profits triple despite M1 deal failure
Singapore telco Simba, a unit of Tuas Ltd, cited hardware issues for exceeding spectrum limits, as its parent company's net profit rose 277% to S$26 million for the year.
Simba admits spectrum usage beyond limits
Simba, the Singaporean telecommunications provider, has acknowledged exceeding regulatory spectrum limits. The company, a subsidiary of Australian-listed Tuas Ltd, stated on Wednesday (September 23) that its usage went beyond Infocomm Media Development Authority (IMDA) permissions.
Tony Moffatt, Tuas Ltd's company secretary, attributed the unauthorised use of 2,300 megahertz spectrum for 4G networks to hardware and software issues. This disclosure follows the collapse of Simba’s proposed S$1.4 billion acquisition of M1 in May, which IMDA linked to potential breaches of Singapore’s Telecommunications Act.
Regulatory investigation continues
The IMDA is still investigating Simba’s spectrum usage, according to a spokesperson. Tuas Ltd’s annual report indicated that IMDA has not yet specified potential consequences for Simba. These could include financial penalties, changes or termination of Simba’s operating licences in Singapore, and personal repercussions for individuals involved.
David Teoh, executive chairman of Tuas, affirmed the company's full cooperation with IMDA and its wait for a formal decision. Tuas management noted no timeline for IMDA’s determination.
Strong financial performance despite uncertainty
Despite the regulatory uncertainty, Tuas Ltd reported a significant increase in its full-year net profit. For the year ended 31 July 2026, net profit surged 277% to S$26 million, up from S$6.9 million the previous year. Revenue climbed 24% year-on-year to S$187.6 million, compared with S$151.3 million. Earnings per share also rose to S$0.0478 from S$0.0148.
Simba’s active mobile subscriber base grew from 1.3 million in the 2025 financial year to nearly 1.5 million by 31 July 2026, even in a competitive market.
Tuas anticipates Simba will spend an additional S$15 million to S$30 million in capital and operating expenditure during the new financial year. These funds will address Singaporean cybersecurity mandates.
Executive chairman David Teoh indicated Simba is also developing new products for the Singapore market, slated for launch this financial year, with CEO Richard Tan targeting enterprise broadband growth. Despite these plans, Tuas shares on the Australian Securities Exchange closed 23.4% lower on Wednesday, shedding A$0.544 to A$1.785.
The ongoing regulatory uncertainty around the spectrum breach could influence future market consolidation within Singapore’s competitive telecommunications sector.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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