MiX Telematics says its revenue for the new financial year should come in at between R1.388 billion and R1.41 billion, as it anticipates growing its top line by between 8.9% and 10.9%.
MiX says, in its full-year results commentary, this is based on an expected increase in the number of its subscribers based on current market conditions.
In the year to March, the company grew its subscriber base 25.3%, to more than 450 000 and increased its subscription revenue 24.3% to R853.7 million. Overall, revenue was R1.27 billion and its operating profit was R171.5 million, a slight decline from the R185.9 million it reported last year.
MiX says this decline was mostly due to the impact of the expected losses incurred by the start-up operation in Brazil. In addition, operating costs increased because it invested in staff and marketing to support its growth initiatives, it says.
Net profit came in at R151.6 million, compared with R128.5 million last year. The company had expected to hit the R1.3 billion mark this year.
CEO Stefan Joselowitz notes the company continues to see a shift to fully-bundled deals as enterprise customers increasingly opt for the pure subscription structure rather than pay for the hardware upfront.
During the year, the group listed on the New York Stock Exchange, raising R649.9 million. Joselowitz says the increased visibility the listing gave its brand aided it in attracting key new sales hires, particularly in the Americas.
"We continue to believe MiX Telematics is well positioned to be a prime beneficiary of telematics market growth, as we have already achieved meaningful scale, built a global distribution network, and offer state-of-the-art solutions that yield a powerful return on investment for our customers."
The group ended the year with cash of R830.5 million, an increase from R792.6 million at the end of the third quarter.
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