MiX Telematics added more than 22 600 subscribers during the quarter, taking the total base to more than 789 000 subscribers.

DURBAN – MiX Telematics, a global provider of fleet and mobile asset management solutions, reported double-digit growth in earnings for the quarter to end September, boosted by an increase in subscriber numbers in the quarter. 

MiX Telematics added more than 22 600 subscribers during the quarter, taking the total base to more than 789 000 subscribers. 

Its adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) rose by 12 percent to R172 million, with an adjusted Ebitda margin of 31.9 percent, up by 110 basis points during the quarter. 

Subscription revenue increased by 12.2 percent to R471.2m, and up by 10.7 percent on a constant currency basis, benefiting from a net increase of more than 75 500 subscribers from October 2018 to September 2019. 

The group said yesterday that this represented a subscriber base increase of 10.6 percent during the period.

Total revenue increased by 8.4 percent to R538.2m, while hardware and other revenue decreased by 12.5 percent to R67m during the quarter. 

The group also reported a 20 percent increase in diluted adjusted earnings per share of 12 cents, with free cash flow of R50m. 

Chief executive Stefan Joselowitz said: “Our results were once again highlighted by double-digit subscription revenue growth, solid subscriber additions, as well as continued Ebitda margin expansion and positive free cash flow.” MiX Telematics operates in more than 120 countries.

Looking ahead to the 2020 financial year, the group said it expected subscription revenue to be in the range of between R475m and R480m in the next quarter. 

The group said this would represent subscription revenue growth of between 8.2 to 9.4 percent compared to the third quarter of fiscal 2019. 

Adjusted Ebitda was expected to be between R650m and R665m, which would represent adjusted Ebitda growth of between 7.8 and 10.3 percent. MiX Telematics has translated US dollar amounts in the outlook from South African rand at the exchange rate of R14.58 per $1, which was the R/$ exchange rate reported as of October 28. 

“We remain confident that our diversified global footprint and the unmatched range and quality of our product portfolio will continue to support our growth and profitability objectives,” Joselowitz said. 

MiX Telematics shares closed 2.59 percent lower at R7.51 on the JSE yesterday.