MiX Telematics Subscriber Base Up; Americas Sees Slight Decline

MiX Telematics Limited (NYSE:MIXT, JSE:MIX), a leading global provider of fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS), has announced financial results for its fourth quarter and for its full fiscal year 2017, which ended March 31, 2017.

Highlights for fourth quarter fiscal 2017 included:

* Net subscriber additions of 16,700
* Subscription revenue of R322 million ($24 million), ahead of guidance
* Adjusted EBITDA of R87 million ($7 million), representing a 22% Adjusted EBITDA margin
* Operating profit of R41 million ($3 million), representing a 10% margin
* Net cash from operating activities of R129 million ($10 million)

“MiX’s ability to exceed expectations was driven by ongoing strength across the portfolio globally which resulted in a return to double digit subscription revenue growth on a constant currency basis,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics. “During fiscal 2017, the company reached an inflection point in regards to margin accretion, particularly as MiX is moving out of a heavy investment cycle into a phase where we are starting to enjoy the returns on these investments. We are scaling the overall operations and have entered fiscal 2018 with very good momentum. We expect a year of strong subscription revenue growth and margin expansion, and looking forward we are confident in our ability to execute our strategic initiatives to achieve our targeted adjusted EBITDA margin of 30% over the long term.”

Financial performance for the three months ended March 31, 2017 highlights were:

Subscription revenue: Subscription revenue was R321.7 million ($24.0 million), an increase of 4.8% compared with R307.1 million ($22.9 million) for the fourth quarter of fiscal 2016. Double digit subscription revenue was achieved on a constant currency basis. Subscription revenue benefited from an increase of over 55,800 subscribers, which resulted in an increase in subscribers of 9.9% from March 2016 to March 2017.

Total revenue: Total revenue was R391.4 million ($29.2 million), an increase of 1.9% compared to R384.0 million ($28.6 million) for the fourth quarter of fiscal 2016. Hardware and other revenue was R69.7 million ($5.2 million), a decrease of 9.4% compared to R76.9 million ($5.7 million) for the fourth quarter of fiscal 2016.

In the Americas, the region’s subscriber base declined by 0.2% since March 31, 2016 due to customer fleet size contraction mainly in the oil and gas vertical in the first half of fiscal 2017. Despite this contraction, constant currency subscription revenue growth was 3.2% as subscription revenue was assisted by the market’s preference for bundled deals across new and existing customers. Total revenue grew by 0.2% on a constant currency basis.

Category: General Update