File picture\: Alex Grimm
File picture\: Alex Grimm

MiX Telematics sees a 25.6% hike in earnings

By Sandile Mchunu Time of article published Jan 31, 2020

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DURBAN -  Fleet management, driver safety and vehicle tracking firm MiX Telematics saw a 25.6 percent hike in earnings for the third quarter to end December as it added 23 200 new subscribers in the quarter.

MiX Telematics now has an overall subscriber base of more than 812 000 subscribers.

Chief executive Stefan Joselewitz said the third quarter results reflected continued revenue growth and Ebitda margins that again exceeded 30 percent.

The group on Thursday  reported a 25.62 percent increase in profits to R71.1 million compared to R56.6m last year.

Its adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 3.66 percent to R161.5m compared to  R155.8m last year.

“While we continue to work through some impact from macroeconomic and global trade headwinds, we remain confident that our diversified global footprint and the breadth of our product portfolio will continue to support our attractive combination of meaningful growth and substantial profitability,”  Joselewitz said.  

Its subscription revenue was up 8.5 percent to R476.1m, with the group attributing this to a net increase of more than 76 600 subscribers from January to December, representing  an increase in the subscriber base of 10.4 percent during that period.

Total revenue was marginally up by 4.3 percent to R536.6m.

 However, hardware and other revenue declined by 19.8 percent to R60.5m during the quarter.  The group has operations in Europe, Africa, South America and the Middle East.
Its earnings per share (Eps) was up by 30 percent to 13 cents compared to 10c reported last year.

Looking ahead Mix Telematics expects its subscription revenue to increase by 10.4 percent to 11 percent in the fourth quarter and total revenue to increase by between 6.5 percent and 7.5 percent compared to a year earlier.

The group also expects its adjusted Ebitda in the fourth quarter to fall between R625m and R643m, which would represent an increase of between 3.7 percent to 6.7 percent compared to a year earlier.

BUSINESS REPORT  

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