MiX Telematics subscriber base soars
MiX Telematics, a JSE-listed vehicle tracking solutions provider, has seen continued growth in its subscriber base over the three months ended June 2013.
Overt the quarter, the company estimates subscription revenue to be between R192 million – R196 million ($19.3 million – $19.7 million), representing an estimated increase of 20.5% to 23.0% over the three months ended 30 June 2012.
The estimated increase in subscription revenue was attributable to the revenue contribution of a comparatively larger subscriber base, the group said.
The company started the quarter with a subscriber base of 359,643 vehicles under subscription, an increase of 31.8% from the comparative quarter’s opening subscriber base.
The rate of growth in vehicles under subscription exceeded the rate of estimated subscription revenue growth due primarily to an increase in sales of the company´s Beam-e solution, which carries a lower subscription price per vehicle, MiX said.
The company estimates the net increase in vehicles under subscription during the quarter was 17,000 – 18,000 subscribers.
For the three months ended 30 June 2013, the company estimates revenue to be R295 million – R301 million ($29.6 million -$30.2 million), representing an estimated increase of 5.2% to 7.4% over the comparative period.
The estimated growth in net revenues was driven by increased subscription revenue, offset by a decrease in hardware and other revenue.
MiX estimates a decrease in hardware and other revenue of R16million – R18 million ($1.6 million – $1.8 million), representing an estimated decrease of 13.2% to 14.9% compared to 2012.
The majority of the reduction in hardware and other revenue was due to cellular connection and upgrade incentive revenue not being received during the three months ended June 2013 as a result of the renegotiation of the company’s cellular data package, MiX said.
The company estimates gross profit to be R196 million – R200 million ($19.7 million -$20.1 million), representing an estimated increase of 16.7% to 19.1% over the comparative period.
“The estimated increase in gross profit was driven by significant growth in the company’s subscription revenue, resulting in fixed costs supporting an increased number of subscribers as well as savings in communication costs as a result of the renegotiation of the cellular data package,” MiX said.
For the three months ended June 2013, MiX estimates adjusted earnings before interest, taxes, depreciation and amortization to be R64 million – R68 million, representing an estimated increase of 5.7% to 12.3% over the comparative period.
MiX has an operational presence in seven countries, 135 channel partners on six continents and customers in 112 countries. In May, it opened up a new office in Sao Paulo, Brazil to grow its market share in Brazil and the greater Latin America region.
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