MiX Telematics expects to end the full year with revenue of as much as R1.3 billion, as it anticipates its top line to grow by between 8% and 11%.
This guidance is included in its interim results statement, published this morning. The group, which provides fleet and mobile asset management solutions, delivered as software-as-a-service, also anticipates subscription revenue gaining around 20%, to R833 million.
During the first half of the year, subscription revenue gained 24%, to R401 million, as its base grew 28% to cover more than 404 000 vehicles. In total, its top line was boosted 9%, to R613 million, in the six months to September.
Operating profit improved from R76.3 million to R80.3 million. During the second quarter, subscription revenue moved up 25% year-on-year, to R204 million, while total revenue increased 11%, to R315 million.
CEO Stefan Joselowitz says "adoption of both fleet and consumer products is increasing in our target markets, and MiX Telematics is well positioned to be a prime beneficiary of growth opportunities, as we have already achieved meaningful scale, built a global distribution network, and offer scalable, state-of-the-art solutions that yield a powerful return on investment".
At the end of September, it had cash and cash equivalents of R767.8 million, which grew from R150.3 million at the end of June. The gain was thanks to its share issue under alternative depository receipts (ADR).
Its listing in the US of ADR secured it R650 million in cash, before expenses of R8.5 million. Its ADR listing, on the New York Stock Exchange, was done through the Bank of New York Mellon, in August.
During the second quarter, the group incurred additional investments in headcount and other expenses as it started operations in Brazil.
Regional view
The Brazilian operation showed "modest" revenue in the first half. It made a R5.4 million loss at the adjusted earnings before interest, tax, depreciation and amortisation line, and is not expected to break even for the current fiscal year.
Africa consumer solutions saw subscribers gain 13.3%, while revenue from subscriptions grew 10%. This unit accounts for 27% of its overall revenue. Africa fleet solutions, accounting for 25.5% of overall revenue, grew 16.6%.
In total, Africa accounts for 52.5% of MiX Telematics' business.
Europe fleet solutions, 11.2% of its business, grew subscribers 14.6%, despite "continuing economic headwinds in the region". North America fleet solutions, 10.2% of its turnover, grew subscribers 16.7%.
MiX Telematics believes the premium fleet market is highly under-penetrated in the Americas, and it is investing in sales and distribution capacity in the region, which posted a R2.1 million adjusted earnings before interest, tax, depreciation and amortisation loss.
Share