MiX Telematics grows earnings on new subscribers

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MiX Telematics grows earnings on new subscribers

Published Date: 2019-05-15 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

MiX Telematics grows earnings on new subscribers

The vehicle tracking and asset management solutions group is targeting similar growth in the year ahead.

MiX Telematics has reported a strong fourth quarter, wrapping up a positive year for the fleet and mobile asset management solutions business. It credits a rising subscriber base - with higher spend per subscriber - for the improvement.

The group provides vehicle tracking and security devices for customers, managing over 750,000 assets in 120 countries.

Subscription revenue rose 16% to R1.69 billion in the year to end-March as it added 73,600 new subscribers, a third more than the previous year. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 36% to R603 million as its EBITDA margin improved by 430 basis points to 33%. It's now targeting a margin of 35% plus. Adjusted earnings per share jumped 63% to 44c.

The group said it was targeting growth of 14.3% to 15.5% in subscription revenue for the year ahead and expected adjusted EBITDA to rise by 12.8% and 16.3% as a result.

Its shares rose 2.6% to R9.85 yesterday.





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