Telecommunication supplier Huge Group on Monday advised that its headline earnings per share and earnings per share for the half-year ended 31 August 2009 are expected to be 110% to 130% lower than the 26.18 cents reported for the previous comparative period. Huge Group said main reasons for the decrease in EPS and HEPS could be attributed to a reduction in cellular airtime and other revenue of R14-mn from R262-mn for the 1st half of this year to R253-mn for the f1st half of 2010.
Weighted average daily cellular airtime revenue was down by R75 000 per average calling day from R1.9-mn per average calling day to R1.8-mn per average calling day. There were 131.5 weighted calling days during 1HY10 versus 132 weighted calling days during 1HY09, which had the effect of reducing gross profit by R2.8-mn based on current discounts received from the mobile network operators, with the after tax impact on earnings amounting to R2-mn, according to Huge. "An increased focus on sales coupled with the appointments of a managing director: Sales and a managing director: Channel and Distribution at Huge Telecom, should result in an improvement during 2HY10," it said. Huge added that the contractual seasonality or timing patterns of mobile network contracts, with a contract period of 24 months, had the effect of reducing connection incentive bonuses earned during 1HY10 by R13-mn from R43-mn in 1HY09 to R29-mn during the period under review.
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