Cartrack’s ‘strong subscriber growth’ behind increase in revenue
Cartrack, a South African company with ambitions to be a global player in the technology used by insurance companies to monitor clients’ driving habits and to recover stolen vehicles, reported 21% growth in interim aftertax profit to R144m.
But the company cut its interim dividend for the six months to end-August to 18c from 20c in the matching period, its results released on Wednesday morning showed.
Cartrack said it needed to "invest in operational, service and distribution capacity, plus an accelerated investment in research and development".
The group’s interim revenue grew 14% to R630m.
Cartrack said its overall subscriber numbers grew 21% to 666,000, with growth in other regions offsetting a 3% decline in Africa due to "challenging economic conditions". Subscription revenue increased by 19% and now represents 88% of total revenue.
"The increase in revenue can primarily be attributed to strong subscriber growth. Revenue was negatively impacted on consolidation by the strengthening rand. Had exchange rates remained unchanged, revenue would have increased by 18% to R652.4m," CEO Zak Calisto said in the results statement.
The group’s headline earnings per share (HEPS) grew 20% to 46.2c.
According to Cartrack, it had a 93% recovery rate of stolen vehicles as at February 28, which "reflects the superior quality of its technology and services".
"The technology and infrastructure required for the recovery of stolen vehicles is a key barrier to entry for competitors looking to enter the telematics industry in any high-crime region," Calisto said.