MiX Telematics eyes 500,000 susbcribers
MiX Telematics, a JSE and NYSE-listed vehicle tracking solutions provider, has reported a 26% rise in vehicles under subscription to 428,500, in third quarter results ended December 2013.
It follows a 28% rise to 404,000 subscribers in the prior quarterly period, from 376,900 subscribers at June 30, 2013.
Total subscription revenue of R220 million, grew 25% year over year, MiX said, driven primarily by the increase of over 88,000 vehicles under subscription.
Total revenue advanced 3.8% to R309.8 million, but operating profit declined to R38.4 million, from R42.9 million in 2012.
“We are pleased to report strong third quarter results, which were highlighted by 25% year over year growth in subscription revenue,” said Stefan Joselowitz, CEO of MiX Telematics.
“Our focus on selling fully-bundled deals is paying off as we had an increased number of enterprise customers opt for the pure subscription structure rather than pay for the hardware up front.
“Our enterprise fleet segment landed substantial deals in the quarter, while our passenger vehicle segment continued to demonstrate strong growth. Of note, adoption of our solutions in the bus and coach industry continues to expand, the company lead said.
The CEO noted new deals during the period including a significant deal with Lind Gas in Brazil.
The third quarter of fiscal year 2014 included expected losses incurred by the start-up operation in Brazil and additional investments in headcount, MiX said.
The company opened up a new office in Sao Paulo, Brazil in May last year.
Earnings per diluted ordinary share amounted to 6 cents, compared to 4 cents per share in the third quarter of fiscal year 2013.
MiX generated R50.1 million in net cash from operating activities for the three months ended December 2013 and invested R33 million in capital expenditures during the quarter.
Business Outlook
MiX said it expects to generate revenue of between R1.27 billion to R1.3 billion for the full 2014 fiscal year, which would represent revenue growth of 8% to 11% compared to fiscal year 2013.
It anticipates subscription revenue of between R841 million to R845 million, which would represent subscription revenue growth of 22% to 23% compared to fiscal year 2013.
For the fourth quarter of fiscal year 2014 the company expects subscription revenue to be in the range of R220 million to R224 million which would represent subscription revenue growth of 18% to 20% compared to the fourth quarter of fiscal year 2013.
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