Mix susbscriber growth slows

·7 Aug 2014

MiX Telematics says its subscriber numbers have increased by 23% year-over-year, bringing the total to over 462,700 subscribers at June 30, 2014.

In financial results for the first quarter of fiscal year 2015, the group reported total subscription revenue of R236.6 million, up 22% year over year.

MiX is a provider of fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS).

The group said that first quarter net additions to its vehicles under subscription fell short of expectations as the company faced difficult macroeconomic conditions in South Africa and political unrest in the Middle East.

Stefan Joselowitz, CEO of Mix Telematics, said: “We are pleased with our investments in sales and marketing and the strengthening of our management team which combined with our solid pipeline should aid us in achieving our plan for the 2015 fiscal year”

“We are mindful that South Africa is more than 50% of our revenue and are monitoring the macroeconomic environment carefully.”

Total revenue for the three months ended June 30, 2014 was R319.2 million, an increase of 7.0% compared to R298.4 million for the first quarter of fiscal year 2014.

Growth in subscription revenue was driven primarily by an increase of over 85,000 subscribers, which resulted in an increase in subscribers of 22.8% from June 2013 to June 2014.

Operating profit was R22.5 million, compared to R37.3 million for the first quarter of fiscal year 2014.

The company issued the following financial guidance for the full 2015 fiscal year:

Revenue – R1.385 billion to R1.4 billion, which would represent revenue growth of 8.9% to 10.9% compared to fiscal year 2014;

Subscription revenue – R1.02 billion to R1.03 billion, which would represent subscription revenue growth of 19.5% to 20.6% compared to fiscal year 2014.

For the second quarter of fiscal year 2015, the company expects subscription revenue to be in the range of R240 million to R243 million, which would represent subscription revenue growth of 15.9% to 17.4% compared to the second quarter of fiscal year 2014.