Cartrack aims to double subscribers to 2-million
Vehicle-tracking company to stick to pursuing growth organically instead of through acquisitions
Listed vehicle-tracking company Cartrack is aiming to double its subscribers as demand for its technology products soars.
Though CEO Zak Calisto would not be drawn on a time frame, he said the group was targeting 2-million customers “as quickly as possible”.
The company surpassed the 1-million subscribers mark in the six months ended August 31. It has more than 830,000 subscribers in SA.
Calisto said the company would stick to its tradition of pursuing growth organically, instead of through acquisitions.
Cartrack, which provides fleet-management and stolen-vehicle recovery products and services, has a presence in 23 countries across Africa, Europe, North America, Asia Pacific and the Middle East.
Speaking after the release of the firm’s half-year financial results, Calisto, who is the founder of the company, said most of the markets in which the company has a presence were “underpenetrated” amid growing demand for its telematics services.
Telematics technology products help companies better manage and monitor driver behaviour and fuel use, among other elements.
“The group has seen a notable rise in demand for data across the globe. Even the largest markets in which Cartrack operates remain underpenetrated and there are many opportunities available to provide customer-centric solutions to enterprise customers and individuals,” Cartrack said.
The company, which has a market capitalisation of R7.2bn, said it expected demand for data analytics to increase “for the foreseeable future”.
“It is anticipated that demand for actionable data will continue to increase and lucrative growth opportunities across all operating regions and distribution channels will continue to emerge.”
Calisto said Cartrack’s international business was growing faster than its SA business. Regions outside SA accounted for 27% of revenue.
Asia Pacific, the company’s second largest contributor to revenue after SA and the fastest-growing segment in the group, increased subscription revenue by 46% to R105m.
The region presents the greatest potential in the long term because of “fragmented market participants delivering entry-level telematics offerings”, Cartrack said. Europe increased subscription revenue by 20% to R80m.
SA, the biggest contributor to revenue, increased subscription revenue by 26% to R655m. Calisto said the South African market presented the company with numerous untapped opportunities.
Cartrack’s performance in SA defied the gloomy economic outlook in the country as its customers continued to invest in security technology, he said.
In the past six months, it increased subscribers by 22% to just over 1-million, while subscriber revenue soared 26% to R897m. Total revenue was up 19% to R938m.
Cartrack increased basic earnings per share and headline earnings per share by 28% to 72.3c and 72.2c, respectively. Cash generated from operations was up 70% to R446m. It increased interim dividend by 11% to 20c.
Cartrack shares were up 5.06% to R24.48 on Wednesday, having gained 71.19% since the beginning of 2019.