Cartrack aims to double customers

Listed vehicle-tracking company Cartrack is aiming to double its subscribers as demand for its technology products soars.

Though CEO Zak Calisto would not be drawn on a time frame, he said the group was targeting 2-million customers “as quickly as possible”.

The company surpassed the 1-million subscribers mark in the six months ended August 31. It has more than 830,000 subscribers in SA.

Calisto said the company would stick to its tradition of pursuing growth organically, instead of through acquisitions.

Cartrack, which provides fleet-management and stolenvehicle recovery products and services, has a presence in 23 countries across Africa, Europe, North America, Asia Pacific and the Middle East.

Speaking after the release of the firm’s half-year financial results, Calisto, who is the company’s founder, said most of the markets in which the firm has a presence were “underpenetrated” amid growing demand for its telematics services.

Telematics technology products help companies better manage and monitor driver behaviour and fuel use, among other elements.

“The group has seen a notable rise in demand for data across the globe. Even the largest markets in which Cartrack operates remain underpenetrated and there are many opportunities available to provide customer-centric solutions to enterprise customers and individuals,” Cartrack said.

The company, which has a market capitalisation of R7.2bn, said it expects demand for data analytics to increase “for the foreseeable future”.

Calisto said Cartrack’s international business was growing faster than its SA business. Regions outside SA accounted for 27% of revenue.

Asia Pacific, the company’s second-largest contributor to revenue after SA and the fastestgrowing segment in the group, increased subscription revenue by 46% to R105m.

Europe increased subscription revenue by 20% to R80m.

SA, the biggest contributor to revenue, increased subscription revenue by 26% to R655m. Calisto said the SA market presented the company with numerous untapped opportunities.

Cartrack’s performance in SA defied the gloomy economic outlook in the country as its customers continued to invest in security technology, he said.

Cartrack’s total revenue was up 19% to R938m.

Basic earnings per share and headline earnings per share rose by 28% to 72.3c and 72.2c, respectively.

46% how much Asia Pacific increased subscription revenue

20% Europe’s rise in subscription revenue

26% SA’s subscription revenue rise