MiX Telematics saw its shares leap 11.29% yesterday, to close at 345c, a 35c gain, after it published its annual results.
Writing in the results commentary, CEO Stefan Joselowitz says its overall subscriber base grew to more than 359 000 active subscribers, an increase of over 30%. Total revenue gained 15%, to R1.17 billion, and it saw acceleration in the growth of its recurring revenue component, which grew more than 19%, to R687 million, he says.
"Our subscriber base is the economic engine of our business and we believe the group's strong performance in this area bodes well for the future." MiX provides fleet and mobile asset management solutions, delivered as software as a service.
Joselowitz says alll of its regional fleet operations grew their subscriber bases, but some fared better than others against plan. As a consequence of its global subscriber growth, MiX International performed well during the year under review, he says.
MiX has a presence in the Middle East, Africa, North America, South America, Australia and Europe. Headline earnings of R132 million was a 26% year-on-year gain and translated into 20.1c a share, up from last year's 15.9c a share.
Regional view
Joselowitz says its Middle East unit experienced solid wins, which put it ahead of plans for the year and bodes well for the future. Africa operation enjoyed a "great" year with growth at both top-line and profit level, he adds.
Although it saw strong subscriber and annuity revenue growth out of North America, this was mainly due to the rollout of two large deals that had been won in the previous fiscal year, says Joselowitz.
"We are currently competing for a number of high-value tenders on which we are cautiously optimistic, but - in the meantime - the team is seeking new vertical opportunities to complement the oil-and-gas vertical."
MiX is also gaining momentum in its efforts to develop the Latin American market, says Joselowitz. In Europe, the unit was behind plan for the year, mostly due to difficult trading conditions, although it saw some slow but steady improvement as the year progressed, he adds.
Australia delivered "excellent" performance for the year and in the process concluded a number of large deals both in the resource sector and a sizeable deal with a bus operator.
"Having put another solid year behind us, our team is excited about the new opportunities and challenges that we face in the year ahead," said Joselowitz.
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