Vehicle Tracking Firm Cartrack Adds 115 000 New Customers

Cartrack expanded in-field testing in the USA in the six months ended 31 August 2017.

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Cartrack, South African-based vehicle tracking company, posted a 21% rise in customers to 666 000 subscribers.

The number was driven by the addition of 115 000 new subscribers.

Cartrack provides services related to stolen vehicle recovery, fleet management and insurance telematics through Software as a Service (SaaS).

The South African-based firm attributed strong growth to positive performance from its operations in South Africa, Europe, and Asia-Pacific, while the Africa segment showed a decrease in subscribers of 3% consequent upon the challenging economic conditions.

The Africa segment posted a decrease on revenue to R53 million versus R57 million in the previous period due to the stronger rand over the same period. However, the company said had exchange rates remained unchanged, revenue would have increased by 9%.

The company also informed investors that because of strong subscriber growth revenue rose 14% to R630 million, while subscription revenue jumped by 19% and now represents 88% of total revenue.

The company competes with JSE-listed Digicore, which was acquired by US-based technology firm Novatel for R1.1 billion.

It also competes with JSE-listed Mix Telematics and Tracker.

Cartrack reported that earnings per share (EPS) was up by 21% to 46,6 cents.

Expansion to the US

Cartrack expanded in-field testing in the USA in the six months ended 31 August 2017.

“This revealed the need for further hardware and software adaptations in order to successfully compete in this marketplace. R4,3 million in operating expenses were incurred during the interim reporting period. Sales activities have now commenced,” said the company.

The vehicle tracking firm is also looking at benefiting from the growth of Internet of Things (IoT).

SaaS, within the context of the IoT, continues to rapidly expand as the digital civilisation comes of age.

“Cartrack remains at the forefront of the related telematics expansion and continues to drive innovation and application through its interaction with customers and strategic research and development activities,” said the firm.


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