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Johannesburg - Shares in Huge Group [JSE:HUG] dived more than 13% as the South African investment holding company swings to a full-year headline loss of 15.41 cents per share.
Huge Group was down 13.04% at 60 cents in afternoon trade.
The group noted a basic loss per share of 15.33c, from basic
earnings per share of 8.58c in 2010.
Total revenue declined to R523.77m from R573.52m, but the
group reported an operating loss of R23.89m from a prior profit of R3.28m.
Cash generated from operations during the current financial
year amounted to R1.1m.
Capital expenditure amounted to R2.7m, while long-term debt
was further reduced by R14.9m.
"Significant changes took place in the South African
telecommunications industry during the period under consideration. Termination
rates were regulated for the first time, a glide path for the lowering of
termination rates implemented, different classes of operators identified, and
different termination rates stipulated for each class of operator," Huge
said.
It said that a clear distinction was made between fixed-line
operators and mobile operators and the rates each may charge for termination.
This had a marked effect on many of Huge Telecom and Centracell's competitors
in the industry, in particular the VoIP (Voice over Internet Protocol)
operators who had been classified as fixed-line operators.
"Huge Telecom and Centracell are not VoIP operators and stand to benefit from the regulatory changes in the future. No benefits from the regulatory changes were realised in the 2010/2011 financial year," it said.
