MiX profit flat in first quarter
Johannesburg - MiX Telematics - the dual-listed fleet management solution company - bolstered its top line in the three months to June as it grew subscribers.
However, its profit line was mostly flat at R31.9 million. In a statement issued on Thursday, the company said subscription revenue gained 13 percent to R306 million, while overall revenue came in at R379 million. This was as it grew subscribers 10 percent year-on-year to 578 000.
The company, listed in Johannesburg and New York, said its operating profit was R23 million, down from R32 million a year ago.
MiX Telematics was founded in 1996 and has offices in South Africa, the UK, the US, Uganda, Brazil, Australia, Romania, Thailand and the United Arab Emirates as well as a network of more than 130 fleet partners worldwide.
In the statement to shareholders, CEO Stefan Joselowitz said he was proud of the company’s ability to grow profitably in difficult times but was “disappointed to see continued deterioration in the energy sector, currency headwinds muting our revenue and new uncertainty from Brexit in the quarter”.
Joselowitz added: ““We haven't got off to the start we were hoping for, but it is early in the fiscal year and we remain focused on catching up and achieving our full year targets.”
The company noted it intended meeting its previous full-year guidance.
It expects subscription revenue of R1.3 billion, and total revenue of between R1.57 billion and R1.6 billion. Adjusted earnings before interest, tax, depreciation and amortisation should be between 14.4 percent and 21.6 percent higher, it adds.
Adjusted earnings per diluted ordinary share should be between of 11.3c and 13.1c, it adds.
This, however, is dependent on subscribers and revenue gaining, hardware sales coming in as expected and the rand staying at R15.5 to the dollar. Should the rand continue on its current trajectory, the company could see R45 million wiped off its top line, it says.IOL