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Huge Group revenue falls

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 01 Jun 2012

JSE-listed Huge Group wrapped up its restructuring in the year to February, which trimmed costs and aided its operational performance.

The group, which operates in the least-cost routing segment, narrowed its operating loss from R23.9 million a year ago to a loss of R2.2 million. Huge says in a statement to shareholders that management will focus on growing and strengthening its distribution channels, improving terms from its wholesale providers and reducing input prices.

Revenue for the year dropped R134.9 million, or 25.76%, from R523.8 million to R388.9 million, while its gross profit declined R15 million, to R74.7 million. However, after trimming operating costs, its net loss narrowed to R3.7 million, from R16.9 million.

During the year, Huge sold its 49% stake in TelePassport Namibia for R4.9 million to Luigi's Trust, an associate of non-executive director Anton Potgieter.

TelePassport was formed in 2004 by Huge Telecom and certain “local high-profile residents of Namibia” with the aim of boosting Huge Telecom's market share outside of SA. “Namibia is a small market for the provision of managed telecommunications services and is roughly equal in size to half of Huge Telecom's KwaZulu-Natal office,” it says.

Huge adds Namibia is also a different regulatory market in terms of telecommunications, which makes managing the unit different to its local operations, Huge adds.

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