MiX Telematics boosts subscriber revenue
Fleet telematics solutions provider MiX Telematics has boosted its subscriber revenue by 4.8%.
This morning, the JSE-listed announced the results of its its fourth quarter and for its full fiscal year 2017, which ended March 31, 2017.
"Our fourth quarter marked a strong end to the year. MiX's ability to exceed expectations was driven by ongoing strength across the portfolio globally which resulted in a return to double digit subscription revenue growth on a constant currency basis," says Stefan Joselowitz, CEO of MiX Telematics.
"During fiscal 2017, the company reached an inflection point in regards to margin accretion, particularly as MiX is moving out of a heavy investment cycle into a phase where we are starting to enjoy the returns on these investments."
Joselowitz says the fleet telematics company is scaling the overall operations and has entered fiscal 2018 with very good momentum.
"We expect a year of strong subscription revenue growth and margin expansion, and looking forward we are confident in our ability to execute our strategic initiatives to achieve our targeted adjusted EBITDA margin of 30% over the long term."
MiX Telematics' subscription revenue was R321.7 million ($24 million), an increase of 4.8% compared with R307.1 million ($22.9 million) for the fourth quarter of fiscal 2016.
The company says the subscription revenue was achieved on a constant currency basis. It adds that subscription revenue benefited from an increase of over 55 800 subscribers, which resulted in an increase in subscribers of 9.9% from March 2016 to March 2017.
Total revenue was R391.4 million ($29.2 million), an increase of 1.9% compared to R384 million ($28.6 million) for the fourth quarter of fiscal 2016. Hardware and other revenue was R69.7 million ($5.2 million), a decrease of 9.4% compared to R76.9 million ($5.7 million) for the fourth quarter of fiscal 2016.
Gross profit was R265 million ($19.8 million), as compared to R285 million ($21.3 million) for the fourth quarter of fiscal 2016. Gross profit margin was 67.7%, compared to 74.2% for the fourth quarter of fiscal 2016.
Operating profit was R40.9 million ($3.1 million), compared to R45.7 million ($3.4 million) for the fourth quarter of fiscal 2016. Operating profit margin was 10.5%, compared to 11.9% for the fourth quarter of fiscal 2016.