MiX reports 25% subscriber growth
MiX Telematics has announced a 25.3% increase in vehicles under subscription in the full fiscal year 2014, taking its total beyond 450,000 subscribers at March 31, 2014.
The JSE and NYSE-listed vehicle tracking solutions provider said that for the three months ended March 2014, total revenue grew 12.9% to R348.4 million, from the fourth quarter of fiscal year 2013.
Subscription revenue was 24.9% up from the prior quarter, to R232.6 million.
MiX said that growth in subscription revenue was driven primarily by an increase of over 90,800 vehicles under subscription.
The group said that in the fourth quarter of fiscal 2014, subscription revenue contributed 66.8% of total revenue compared to 60.4% in the fourth quarter of fiscal 2013.
“We are pleased to report strong fourth quarter and year end results, which were highlighted by 25% year over year growth in subscribers and better than expected subscription revenue,” said MiX Telematics CEO, Stefan Joselowitz.
“We continued to see a shift to fully-bundled deals as enterprise customers increasingly opt for the pure subscription structure rather than pay for the hardware up front.”
Total revenue for the full fiscal year 2014 was R1.3 billion, an increase of 8.6%
compared to R1.17 billion in 2013.
Operating profit declined to R171.5 million, from R185.9 million, but total profit improved to R151.6 million, from R128.5 million.
Subscription revenue increased to R853.7 million, up 24.3% from R686.7 million before.
Hardware and other revenue however, declined to R417.9 million, compared to R484.8 million for fiscal year 2013.
“The decrease in hardware and other revenue is primarily attributable to a combination of factors which include a significant increase in the number of fully-bundled subscriptions in fiscal 2014 compared to fiscal 2013 as well as the ongoing decline in hardware prices,” MiX said.
Looking ahead, MiX said that it expects revenue to grow between 8.9% and 10.9% to R1.4 billion and R1.4 billion in 2015
It forecast subscription revenue to grow to R1 billion, which would represent subscription revenue growth of approximately 20% compared to fiscal year 2014.
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