JSE-listed Mix is losing out in new customer subscribers’ war with rival Cartrack and the new registrations for the fourth quarter fiscal 2018 show the gaping divide.
The global provider of fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS) said on Thursday that it added 12, 000 new subscribers for the fourth quarter fiscal 2018.
This pushed Mix total subscribers to 676, 000.
The company added 58, 000 new subscribers in the fiscal year 2018.
But while Mix is the costlier and more popular of the two brands, Cartrack is targeting mass market with innovative products, such as offering theft-only vehicle insurance at R9.99.
Earlier his year, Cartrack announced it has reached the 750, 000 new subscribers’ milestones.
As a result from September 1, 2017 until February 15, 2018, Cartrack added 85, 000 new subscribers compared to 65 812 net additions in the first six months of the 2018 financial year.
Mix said on Thursday that subscription revenue rose 16.1% to R373.6 million ($31.6 million).
It added that total revenue was R453.5 million ($38.4 million), reflecting a 15.9% rise.
Mix reported an operating profit was R73.8 million ($6.2 million), compared to R40.9 million ($3.5 million) for the fourth quarter of fiscal 2017.
“We were very pleased with our fourth quarter results, which capped off another strong year for MiX. During fiscal 2018, we made significant progress toward achieving our long-term adjusted EBITDA margin target of 30% plus as we expanded our margin by over 600 basis points to 25.8%. This was largely due to 19% subscription revenue growth on a constant currency basis,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics.
“The strong performance was driven by the continued growth in our premium fleet subscriptions globally, improvements in ARPU and ongoing operating leverage in the business. Looking forward, we have entered fiscal 2019 with great momentum. We are confident in our ability to achieve our long-term goals given our strong pipeline and ability to further enhance margin accretion across the business.”