Cartrack sees big subscriber growth on a vehicle recovery rate of 92%

Vehicle telematics firm Cartrack on Tuesday (28 May) reported a 28% rise in subscriber growth, to 960,798, for the period ended February 2019.

Total revenue grew by 28% to R1.69 billion, and subscription revenue grew by 30% year-on-year to R1.521 billion. Subscription revenue now represents 90%, up from 88% in 2018, “and we expect this to increase further with scale”, the group said.

The net new subscriber addition of 209,418 is a significant increase from the prior year net additions of 150,770, Cartrack said.

Financial highlights

  • EBITDA of R761 million (FY18: R651 million) with a margin of 45%;
  • Operating margin of 30%;
  • Operating profit up 15% to R500 million after accelerated investment for growth;
  • Basic earnings per share (EPS) of 116 cents, up 16%;
  • Headline EPS (HEPS) of 116 cents, up 15%;
  • Dividend per share of 12 cents;
  • Cartrack’s has an industry-leading recovery rate of 92%.

Isaias Jose Calisto, founder and global chief executive officer, said: “This year marks the sixth year of consecutive double-digit total company revenue and subscription revenue growth. Added to that, subscription revenue as a percentage of total revenue reached peak levels of 90% this year.

“We are equally excited about the continued growth and adoption of our advanced fleet management platform by a number of large corporate fleets in both Asia Pacific and mainland Europe. In South Africa, our industry-leading audited recovery rate of 92% underpins the superior specialised quality of the security technology required for the recovery of stolen vehicles.”

South Africa

The South African segment delivered particularly strong subscription revenue growth of 31% from R854 million to R1.117 billion, while subscribers grew by 30%, Cartrack said.

“The sales mix in FY19 continued to include significantly more bundled sales resulting in a decrease in hardware and installation revenue. The combination of these two delivered strong revenue growth of 27% from R984 million to R1.246 million in a tough trading environment,” it said.

South Africa’s operating profit of R422 million, up from R376 million in the prior year, represents a 34% margin.

“We anticipate margin expansion and continued subscriber growth in FY20 Cartrack will continue to invest in data analytics and behavioural science to ensure insurance partners get relevant and accurate data to manage their own risk and enhance the customer’s experience,” Cartrack said.

Read: Cartrack records subscriber growth of 25%

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Cartrack sees big subscriber growth on a vehicle recovery rate of 92%