Mix Telematics subscription revenue up to R194.2m

MiX Telematics provides vehicle tracking devices and related products and services for enterprise fleets, small fleets and consumers.

Total vehicles under subscription increased by 29% year-on-year, bringing the total to more than 376,900 subscribers at the end of June.

"We are pleased with our first-quarter results, which were highlighted by an acceleration in our subscription revenue growth to 22% as well as a 29% increase in vehicles under subscription," MiX Telematics' chief executive Stefan Joselowitz said.

"Our momentum is being driven by strong customer demand in a substantial and highly under-penetrated market," he said.

Last month, the company raised R652.5m through the initial public offering of American Depositary Shares (ADS) on the New York Stock Exchange.

Joselowitz said the proceeds would enable the company to better capitalise on these strengths it has with the extra resources to execute its growth strategy and further expand its global position.

Profit for the period was R26.3m, up from R24.6m in the first quarter of financial the previous year.

MiX Telematics has offices in SA, the UK, the US, Uganda, Brazil, Australia and the United Arab Emirates.

It expects the current year to provide revenue of between R1.26bn and R1.29bn, which would represent revenue growth of between 8% and 11% compared with the previous year.

Its subscription revenue is expected to rise by between 19% and 21% to more than R814m and earnings per diluted ordinary share to climb by between 15c and 16c.

For the second quarter the company expects subscription revenue to be more than R198m, which would represent subscription revenue growth of at least 20% compared with last year.