SA’s Huge Group Targets FinTech Opportunities As Earnings Soar

The group said that platforms for mobile payments, mobility, connectivity and the 'Fintech evolution' provide an exciting and innovative space for it to explore.

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Mikko Lemola / Shutterstock.com
Mikko Lemola / Shutterstock.com

Huge Group, JSE-listed telecommunications firm specialist, is considering delivering disruptive and innovative FinTech solutions to its customers, in partnership with financial institutions, after posting another year of rapid growth.

Revenues climbed 63% to R401 million in the year to February 2018, while EBITDA soared 145% to R128 million.

The group’s net profit after taxation climbed 188% to R77 million.

“The acquisitions prove a defining event for the group and represents an inflection point in the evolutionary growth trajectory of Huge,” the company informed investors on Monday.

“Secondly, the group significantly broadened its customer real estate, which it now calls the Huge Real Estate, and its service offerings. Huge now has a sizeable platform which it can leverage and expand by increasingly introducing innovative product and service offerings, cross-selling and developing new strategic partnerships.”

FinTech Opportunity

FINTECH Investment Financial Internet Technology man hand on table Business, coffee, Split tone
FINTECH Investment Financial Internet Technology man hand on table Business, coffee, Split tone (Photo Credit: www.shutterstock.com)

The JSE-listed company is involved in payment connectivity through Huge Connect.

“The group’s introduction into payment connectivity via Huge Connect will inevitably lead Huge into related services and ultimately Fintech, where we anticipate delivering disruptive and innovative solutions to our customers, in partnership with financial institutions,” the company said.

The group said that platforms for mobile payments, mobility, connectivity and the ‘Fintech evolution’ provide an exciting and innovative space for it to explore.

“It’s expanding customer real estate means that the creation of bespoke financial offerings in partnership with financial institutions becomes viable and potentially a highly attractive investment space.”

SME Market

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SME word on eggshell putting on manu coins to represent the concept of sme financial support or investor or venture capital. soi7studio / Shutterstock.com

The company added that it also anticipate to benefit from customer analytics.

During the reporting period, Huge established its credentials as a large SME service provider, offering connectivity and mobility solutions.

Huge started the financial year with 15 000 customers and ended with a real estate (community of customers) base of circa 45 000.

The company offers a three-pronged service offering to a substantial SME market. Route-to-market includes both direct, through Huge Connect and Huge Networks and indirect, through a substantial and unique value-added reseller channel that resides in Huge Telecom.

“The group is positioned to further invest in extending its current service offerings, as well as deepening them. Each investment will be intentionally designed to increase the size of the customer real estate, which could include niche connectivity solutions, focused inter alia on opportunities that complement and strengthen existing product and service offerings.”

The Bureau for Economic Research records that the formal sector SME’s in South Africa who are employers stands at around 462 815 at Q2, 2015. “It is apparent that the Group is well positioned in the SME market,” the company said.

The company said it will continue with its bolt-on acquisitions and service-diversification investments being actively pursued.

No dividends were declared in the 2018 financial year.

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