Huge Group boosts revenue as it explores fintech space

JSE-listed telco and IT service provider Huge Group on Friday reported an 8.4% increase in revenue for the six months ended August 2018, to R214.6 million.

  • Operating profit increased by 77.0% from R38.2 million to R67.6 million
  • EBITDA increased by 74.1% from R46.1 million to R80.3 million
  • Earnings per share increased by 66.4% from 17.1 cents per share to 28.5 cents per share
  • Headline earnings per share increased by 49.2% from 19.1 cents per share to 28.5 cents per share

The company  said it is involved in many initiatives currently, which, if successfully progressed, will help grow Huge. Some of these initiatives are organic whilst others involve mergers and acquisitions, it said.

It said it has considered at least 12 transactions in the last 12 months, has passed over about six and is presently still engaged in about six transactions.

The acquisition of Huge Connect and Huge Networks during FY2018 resulted in Huge growing its mobility and connectivity business and up-scaling its operations significantly.

The company offers  a three-pronged service – Huge Connect and Huge Networks, and a value-added reseller channel that resides in Huge Telecom.

For Huge Connect, the company said that active SIM card growth, as the means of connectivity to the payments industry, increased by 23.2% over the comparable period.

Huge Connect now has 304,000 active SIM cards in South Africa.

During the period 31 August 2017 to 31 August 2018, Huge Telecom increased its customer base by 11.4% and its telephone lines by 12.9%.

Huge Networks has strengthened its revenue base significantly but remains relatively subscale, it said.

“The group continues to explore opportunities to expand the Fintech Grouping, which today is only focused on payment connectivity. Its real estate of circa 135 000 connected devices makes it one of the largest potential platforms for IoT in Southern Africa.”

The group said it believes that Huge Telecom will benefit significantly from FST.

Looking ahead, Huge said it will continue to build its eco-system for service and product delivery to a real estate in excess of 45,000 SME customers.

“The group believes that it is well positioned to increase the number of installed telephone lines, which is currently has over 43,000, and the number of active devices, which is currently in excess of 120,000 by selling existing services and products to an increasing number of customers.”

Read: Huge Group eyes financial services after revenue surge

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Huge Group boosts revenue as it explores fintech space