The customer growth for South Africa’s telematics firm Cartrack year in and year out is nothing short of stunning.
The JSE-listed group logged yet another half year of double-digit growth for its subscribers.
On Wednesday, Cartrack published its interim results for the six months to August 2018, showing a 28% rise in subscribers to 849, 772.
The company also continues to maintain a strong order book.
Cartrack also has a strong predictable future annuity revenue as 73% of the subscriber based joined the company in the past 36 months. The company said this high percentage is primarily due to the increased investment in distribution in order to meet demand.
The group reported a 25% rise in headline earnings per share (HEPS) to 57,8 cents a share in the six months to end-August 2018. HEPS is South Africa’s main profit gauge.
Operating profit rose 32% to R263,4 million.
With this robust performance, Cartrack is positioned for growth.
Furthermore, the group with its strong cash generation, clean and uncomplicated balance sheet is positioned for further growth.
The company has received a 5-year facility of R600 million from a local bank to finance the recapitalization of customer acquisition costs derived from organic growth.
“As the demand for telematics data continues to increase, there will be lucrative growth opportunities to market across all channels and in each operating region,” the company informed investors on Wednesday.
“As such, opportunities to develop further vertically aligned revenue streams remain at the forefront of Cartrack management’s short and medium-term strategy.”
Cartrack currently has a presence in 24 countries which span Africa, the Middle East, Europe, Asia Pacific, and the USA.
The company valued at R4.2 billion on the JSE has seen its shares dropped 15% in the past 30 days and fell 6.7% in the past year, while MiX with a R5.2 billion market capitalisation has seen its shares drop 7% in the past 90 days and soar 193% in the past three years.