JSE-listed Huge Group has issued a revised trading update and says it will reverse its previous loss-making position when it publishes its results for the year to February.
The company said in a statement to shareholders that earnings and headline earnings per share are expected to be between 9.58c and 11.97c a share. Last year, the company reported a loss per share of 15.33c and a headline loss per share of 15.41c.
Earlier this month, Huge said its results were expected to be between 70% and 90% better in the year to February.
In June last year, the company reported full year revenue of R523.8 million, a decline on 2010's R573.5 million. It reported a basic loss per share of 15.33c and a headline loss per share of 15.41c.
At the time, the company said major mobile networks had stopped paying connection incentive bonuses, which affected turnover in its Huge Telecom and CentraCell business units.
As a result, Huge Telecom and CentraCell were faced with a further restructuring of their businesses. “A potentially healthy financial performance and position was reversed by the significant, but once-off, impact of the cessation of connection incentive bonuses,” said Huge.
It said costs had been trimmed, which would compensate for the cessation of connection incentive bonuses in the 2011/2012 financial year.
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