Listed telecoms company Huge on Monday reported an 8% jump in revenue for the year ended February 2019 as it targets growth in its full suite telephony (FST) service in the year ahead.
“Huge has, like many South African companies, been impacted by the prevailing negative local economic environment. The group has also faced challenges in respect of market volatility, personnel changes and a demanding M&A environment.
Notwithstanding these challenges, the group has produced growth in earnings for the year under review, underpinned by solid operational results.
Following engagement with its shareholders, Huge has shifted its emphasis to cash generation. In doing so the board has taken into account the need to balance the company’s growth aspirations. The company is therefore pleased to announce the declaration of a gross cash dividend of 12.50 cents per share.
In the three years since moving its listing onto the Main Board of the JSE, Huge has delivered 450% growth in profit after tax. It has also expanded its offering to include numerous products and services.
- Total revenue increased by 8% to R433 million;
- EBITDA increased by 16% to R149 million;
- Operating profit increased by 8% to R122 million;
- Headline earnings per share increased by 20% to 55.81 cents per share;
- Gross dividend declared of 12.5 cents per share (0.00 cents in FY2018).
Huge said it has increased its market capitalisation substantially and it has created a head office structure which will enable future expansion.
Looking ahead, Huge said that its board continues to believe that FST is a game-changer.
“It has been proved to be a viable substitute for copper cable connections and as a result, the other mobile telephone network operators in South Africa are also eager to partner with Huge Cellular in taking FST to the market.”
“FST has been proved and accepted by the market and its application will become more pervasive, as is being evidenced by the appetite of a wider audience of mobile telephone network operators and customers. The board views Huge Telecom as an important growth engine for the group.
The group said it continues to explore initiatives to participate in the digital world relating to payments by leveraging Huge Connect’s real estate of 48,000 customers and circa 180,000 connected devices.
“Huge Connect provides Huge with a platform to pursue high growth opportunities in this area. In particular, Huge Connect provides Huge with a gateway into Fintech where Huge can create, in partnership with financial institutions, disruptive and innovative solutions for its customer real estate,” it said.