MiX Telematics forecasts strong growth
MIX TELEMATICS, the listed global provider of fleet and mobile asset management solutions to customers managing more than 640 000 assets in about 120 countries, expects its total revenue to grow by between 7.8 percent and 9.5 percent in its 2018 financial year.
This equates to a growth in its total revenue to between R1.66 billion and R1.68bn.
Subscription revenue was expected to grow at between 14.4 percent and 15.5 percent to between R1.42bn and R1.432bn for the year.
Expected increase
The company said adjusted earnings before interest, tax, depreciation and amortisation (ebitda) was expected to increase by between 33.6 percent and 39.7 percent to between R403 million and R421m. Adjusted earnings per diluted ordinary share of between 22 cents and 23.5c was forecast.
This forecast followed MiX Telematics yesterday reporting a 17 percent year-on-year growth in subscription revenue to R685m in the six months to September. Operating profit to this reporting period improved by 80 percent year-on-year to R88m.
Adjusted ebitda was 56 percent higher at R197m and the ebitda margin improved to 24.1 percent from 17 percent in the same period last year.
Stefan Joselowitz, the chief executive of MiX Telematics, said the group reported a very strong second quarter, highlighted by its ability to exceed expectations across all key operating metrics.
Driven by uptake
“Our 18 percent year-over-year subscription revenue growth on a constant-currency basis was broad-based, driven by uptake from our premium fleet customers globally.
“Additionally, this is the fifth consecutive quarter of adjusted ebitda margin improvement,” he said.
Joselowitz also said yesterday that they were confident in their ability to maintain MiX Telematics’ momentum as they continued to execute their strategic initiatives and remained committed to achieving their longer-term adjusted ebitda margin target of 30 percent plus.
Shares in MiX Telematics rose 2.47 percent yesterday on the JSE to close at R5.81.