MiX Telematics sees 30% subscriber growth

MiX Telematics, a JSE-listed vehicle tracking solutions provider, says it has grown its subscriber base to over 359,000 active users – an increase of more than 30% over the past financial year.

On Monday, the group reported a 15% rise in revenue to R1.17 billion for the year ended March 2013 while its operating profit climbed to R181.2 million, from R146.4 million.

Headline earnings per share for the period was up 26.4% to 20.1 cents, and EBITDA was up nearly 20% at R285 million.

MiX said that, as a consequence of the continued strong generation of cash and profitability, the board has approved a final dividend of 6 cents per share.

When added to the interim dividend of 4 cents per share paid in December, this gives a total distribution of 10 cents per share – an increase of 25% over the prior year.

“Our subscriber base is the economic engine of our business and we believe the Group’s strong performance in this area bodes well for the future,” MiX said.

The group said it derives the majority of its revenues from subscriptions to its fleet and mobile asset management solutions. Subscriptions generally include access to its SaaS solutions, connectivity, and in many cases, use of an in-vehicle device.

“We also generate revenues from the sale of in-vehicle devices, which enable customers to use our subscription-based solutions.”

“Sales are generated through the efforts of our direct sales teams, staffed in our regional sales offices, and through our global network of distributors and dealers. The direct sales teams focus on marketing our fleet solutions to multi-national enterprise accounts and to other large customer accounts,” MiX said.

The group provides a subscription services to customers ranging from small fleet operators and consumers to large enterprise fleets of more than 10,000 vehicles.

Looking ahead, MiX said that despite a turbulent economic outlook in many of the territories in which it operates, “we believe we have the passion, talent, technologies, geographic spread and strategies in place to meet our growth objectives”.

“The building blocks are firmly in place to support our continuous efforts to leverage our cash generative business, thereby growing our subscription base and entrenching our position as a global leader,” said  Stefan Joselowitz, CEO of MiX Telematics.

“A notable step taken in this regard recently was the opening of a MiX Telematics office in Sao Paulo, Brazil, to service the specific requirements of customers in that market,” he added.

MiX has an operational presence in seven countries, 135 channel partners on six continents and customers in 112 countries.

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MiX Telematics sees 30% subscriber growth