Huge Group Limited (JSE: HUG), a South African investment holding entity focused on building and managing strategically integrated enabling ecosystems, today announced the publication of its Integrated Annual Report for the financial period ended 28 February 2026. The report details Huge Group’s continued evolution as an investment holding company focused on ecosystem investments and provides a comprehensive account of the largest investment entities in its Portfolio, with particular focus on the milestone progress achieved by Huge NXTGN; an investment made by Huge Group in 2024.

“Success is not always swift. It requires patience, resolve, and unwavering resilience.” says James Herbst, Huge Group Chief Executive Officer.

“Over the past decade, we have focused our efforts on building an integrated ecosystem of enablement capabilities. We are now at an exciting inflection point – one evidenced by Huge NXTGN’s early-stage growth – which demonstrates the power of commitment, resilience, and focusing on our vision of generating exponential returns for our stakeholders by adopting an ecosystem approach.”

FROM TELECOMS TO ECOSYSTEM INVESTING

Huge Group’s origins lie in the telecommunications sector, having listed on the Alt X of the Johannesburg Stock Exchange in August 2007. Over the years, Huge Group has deliberately evolved from a telecommunications company into an investment holding entity focused on acquiring and managing a portfolio of strategically integrated, complementary investments as part of a long-term vision to create an ecosystem of enterprise enablement capabilities.

While telecommunications services have become increasingly commoditized over the past decade, Huge Group recognized that the true value of these investments lies not in the underlying commodities themselves, but rather in their collective potential to enable: how these investments are combined and leveraged to empower commerce, deepen customer relationships, and drive digital transformation.

This conviction led to a strategic pivot. Following the acquisition of the entity formerly known as Virgin Mobile South Africa – a transaction initiated in October 2021 and closed in November 2023 – Huge Group transformed its investment approach from one of making individual, standalone investments to one of identifying, acquiring, building, and developing enabling ecosystems into which investments are strategically placed.

HUGE NXTGN: THE CATALYST BEHIND THE PORTFOLIO’S INFLECTION

At the heart of the Portfolio’s current momentum is Huge NXTGN (pronounced “Next-Gen”) – Huge Group’s flagship enablement & innovation investment and the vehicle through which its long-term vision is transforming from strategy to reality.

Huge NXTGN is not, as is more generally believed, merely a mobile virtual network enabler (MVNE). It is a sophisticated, leading-edge innovation hub and t serves as the catalyst in driving the monetization of Huge Group’s enablement ecosystem, which seeks to connect organisations – whether they carry significant brands, lesser-known brands, or no established brand at all – to the people and consumers who follow them, use their services, or purchase their products by leveraging the always-personal, always-present channel preferred by all consumers: the mobile device.

Whether a retailer, a bank, an insurer, or a logistics company, Huge NXTGN enables brands to talk to their customers, transact with them, offer significant value, and learn from them, without requiring these organisations to become technology companies themselves. The ecosystem created by Huge Group delivers sophisticated embedded connectivity, digital and technology engagement strategies, underpinned by real infrastructure, proven technology, and deeply entrenched intellectual property.

Comparable to the way global disruptors such as Uber or App stores have innovated to connect supply to demand, Huge NXTGN connects market participants with their customers in ways that were previously too costly or complex to consider, effortlessly allowing enterprises and SMMEs alike to drive scale – creating a win-win dynamic in which every participant in the value chain derives meaningful benefits. This shared-value philosophy is the driving force behind Huge Group’s growth projections.

Huge NXTGN’s subscriber base under management has increased from below 10 000 subscribers in December 2025 to well over 110,000 by the end of May 2026.

THE FOUR KEY PORTFOLIO INVESTMENT COMPANIES BEHIND HUGE GROUP’S MOMENTUM

Huge Group’s investments over the past decade have positioned the company to drive exponential, accelerated growth at a time when the South African ICT industry is arguably entering an asymmetric “super-cycle”, specifically in the digital infrastructure-, cloud computing-, and telecommunications sectors.

Huge Group’s investment ecosystem comprises four strategically integrated Portfolio Investment Companies, referred to as PICs, each playing an important role in delivering technical enablement across Huge Group’s shared-value platform, without sacrificing their identity or ability to innovate individually. In addition to Huge NXTGN, the primary investments informing the growth in the portfolio’s fair value, are:

Huge Distribution

Huge Distribution is a customer-centric, channel-only distributor serving the South African and broader African market. Operating with an entrepreneurial, low fixed-cost model, the business has delivered exceptional year-on-year growth, with FY2026 revenue more than doubling to R112 million (FY2025: R53 million), EBITDA growing fourfold to R12 million from R3 million in the prior period, and gross profit margins improving to 16% from 13% over the same timeframe.

Strategically, Huge Connect is well placed to capitalise on the expected acceleration of IoT adoption driven by artificial intelligence, with particular focus on expanding its point-of-sale communications offering into the informal sector, growing its field service capabilities, introducing eSIM functionality, and laying the groundwork for an African expansion. The business’s annuity revenue model, combined with its deep integration into the payments and connectivity infrastructure of its clients, provides a scalable foundation for continued growth.

Huge TNS

Huge TNS is a new-generation enterprise network enablement partner borne from the business combination of Huge Networks and Huge Telecom. The business offers a comprehensive suite of data, voice, and network services alongside hardware solutions for use by corporate businesses, SMMEs, and small home offices, operating primarily through a national presence and robust business partner- and reseller channels, complemented by a small direct sales team.

“Against a backdrop of tough trading conditions and modest revenue of R237 million, Huge TNS delivered a resilient performance during the past financial period, holding EBITDA steady at R84 million (FY2025: R83 million) with a significant reduction in operating costs to R47 million (FY2025: R64 million). This cost discipline, combined with a gross profit margin of 54%, reflects the operational maturity and efficiency focus that underpins the business.” says Herbst.

Strategically, Huge TNS is positioning itself at the intersection of enterprise connectivity and digital enablement. Key initiatives underway include cross-selling connectivity propositions to its existing customer base, growing high-demand data products such as fixed LTE, VoIP, and fibre, and advancing the rollout of an enterprise-level MVNO enablement proposition — a development that aligns closely with the broader ecosystem strategy and opens meaningful new revenue channels into the business-to-business and machine-to-machine market segments.

OUTLOOK AND STRATEGIC POSITIONING

In considering the future, Herbst reiterates the company’s commitment to, and resilient focus on the long-term vision that has underpinned the patient and strategic investments that have been made over the past decade:

“Huge Group is strategically agile, lean in its operating model, and confident in the trajectory it has set. Its approach to investing in ecosystems and enablement opportunities, its strategically integrated portfolio, and its ability to scale disproportionately relative to capital employed – all underpinned by a shared-value philosophy – positions Huge Group well for an expected super-cycle in enablement. Huge Group is not constrained by traditional, commoditised revenue models exposed to price wars, customer churn, and shrinking margins. It has and will continue to invest differently, and its management believes the current discount at which its shares trade relative to net asset value will narrow as investors and analysts gain a deeper understanding of its unique investment approach.

“With the opportunities w...

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