MiX Telematics, a JSE and NYSE-listed vehicle tracking solutions provider, has reported continued growth in the number of vehicles it has under subscription for the first quarter of fiscal 2014, up 29% year over year.
MiX said it has 376,900 subscribers at June 30, 2013. In the prior quarter, the company estimated an increase in vehicles under subscription of between 17,000 – 18,000.
Subscription revenue of R194.2 million grew 22% year over year, while total revenue of R298.4 million grew 6% for the reporting period which ended June 30, 2013.
Hardware and other revenue of R104.2 million declined 13.8%, due primarily to the expected elimination of connection incentive revenue associated with the group’s old cellular data package which ended in July 2012.
“Our momentum is being driven by strong customer demand in a substantial and highly underpenetrated market.,” said Stefan Joselowitz, CEO of MiX Telematics.
“In addition, we believe MiX Telematics is highly differentiated by our leadership position in both fleet and passenger vehicle management, proven history of innovation and powerful global distribution model.”
Shares in MiX have advanced 100% in the year to date period on the JSE, up R2.97 to R5.95, giving the group a market cap of R4.59 billion.
MiX listed in New York in August following a successful IPO of American Depositary Shares (ADS), raising R652.5 million ($65.5 million) through the sale of 4,400,000 ADSes, each representing 25 ordinary shares of the company.
“The proceeds from our US initial public offering will enable MiX Telematics to better capitalize on these strengths as we now have greater resources to execute our growth strategy and further expand our global market leadership position,” Joselowitz said.
During the quarter, MiX launched MiX Vision, a configurable video recording system that integrates with it’s flagship fleet management solution.
The group also opened a new office in São Paulo, with the aim of growing its market share in Brazil as well as the greater Latin America region.
Providing a financial guidance for the full 2014 fiscal year, MiX said it expects revenue to be between R1.27 billion – R1.3 billion, which would represent revenue growth of 8% to 11% compared to the fiscal year 2013.