Fleet management group Mix Telematics has reported a solid set of results for the first half of its 2019 fiscal year ended 30 September, showing strong growth in subscriptions.
The group reported subscription revenue of R811 million ($57.3 million), an increase of 18.4% year over year, on a constant currency basis, with net subscriber additions of 37,100, compared to 18,100 additions in the first half of fiscal 2018.
This brings the total base to over 714,000 subscribers, up 12% year over year, it said.
It listed operating profit of R154 million ($10.9 million), up 75% year over year, with adjusted EBITDA of R279 million ($19.8 million), up 42% year over year.
The adjusted EBITDA margin was at 29.3%, up 520 basis points year over year.
Profit for the period was R68.8 million ($4.9 million), compared to R58.1 million ($4.1 million) in the first half of fiscal 2018. Profit for the period included a net foreign exchange gain of R0.3 million ($0.02 million) before tax. During the first half of fiscal 2018, a net foreign exchange loss of R1.8 million ($0.1 million) was recorded.
Based on these results, the group raised its full year guidance, with full year subscription revenue now targeted from R1.683 billion to R1.695 billion, and total revenue up from R1.930 billion to R1.963 billion.
“Mix reported a very strong second quarter, highlighted by our ability to exceed expectations across all key operating metrics,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics.
“Our over 18% year over year subscription revenue growth was broad-based, driven by uptake from our premium fleet customers globally. Additionally, this is the ninth consecutive quarter of year over year adjusted EBITDA margin improvement, reaching over 30%.
Joselowitz said that Mix remains well positioned to maintain the momentum for the second half of fiscal 2019 and beyond, given the strong and growing pipeline of opportunities worldwide.