JSE-listed vehicle tracking company MiX Telematics aims to boost its subscriber base through the launch of low-cost devices that can be fitted on a range of vehicles, including motorbikes.
MiX yesterday reported its results for the year to March and said it hit the R1 billion mark for the first time, a 14.8% gain. The group also reported after-tax profits of more than R100 million.
CEO Stefan Joselowitz says most of its regional businesses performed ahead of plan. MiX, which listed in 2007, services customers in 111 countries and has regional operations in six of those countries with third-party distributors in the balance.
Base multiplier
Joselowitz says MiX expects its annuity revenue subscriber base to be multiplied by the addition of its Beam-e product. Beam-e is a low-cost stolen vehicle recovery system that is completely wireless, small and does not require hours of installation, he says.
MiX has not traditionally played in this space as its other offering, Matrix, is targeted at the high end of the market, says Joselowitz. He says Beam-e has already launched and future iterations will be smaller.
The group sees a market for Beam-e among trailer, container, motorbike and even bicycle owners. Joselowitz says it will become a big part of the company's future growth in SA as it will aid annuity revenue gains.
As expected
MiX's US operation showed top-line year-on-year growth of over 200%, finishing in the “green” for the first time with earnings before interest, tax, depreciation and amortisation of R13.5 million, says Joselowitz.
The group's UK/European business saw lower revenue, but gained subscribers. Joselowitz says the unit performed ahead of plan after going through restructuring and has been set up for future growth.
MiX's Middle East and Australasia business “performed well through turbulent conditions” although political upheaval in the Middle East region caused its Dubai-based outfit “some disruptions”. Despite this, the unit grew revenue and signed two deals with oil and gas multinationals in the latter part of the year.
In Africa, MiX's fleet and consumer businesses have grown to a point where a dedicated focus on each sector is required, says Joselowitz. MiX has implemented some structural changes and brought in two new executives.
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