Stefan Joselowitz. Picture: FINANCIAL MAIL
Stefan Joselowitz. Picture: FINANCIAL MAIL

New York and JSE-listed MiX Telematics has raised its earnings projections for the financial year ending March 2019 thanks to strong global demand for fleet management services.

MiX expects to report adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) for the year of between R571m and R584m, or growth of 29.2% to 32.2%.

The company, which offers fleet management, driver safety and vehicle-tracking services, previously said it expected adjusted ebitda of between R550m and R570m.

The group said on Thursday that in the third-quarter to end-December 2018, subscription revenues were R439m, a 16.6% increase from a year before on a constant-currency basis.

"MiX Telematics delivered another strong quarter,” said CEO Stefan Joselowitz.

"Our results were driven by ongoing robust demand globally for our services from customers across all verticals.”

The company was also seeing traction with its new “light fleet solution” called MiX Now, having closed several deals.

“We are confident the strength of our diversified portfolio of subscribers will enable us to maintain our market momentum for the balance of fiscal 2019 and beyond,” Joselowitz said.

MiX added 22,100 subscribers on a net basis in the third quarter, taking its subscriber base to 736,000. It generated free cash flow of R60m in the three-month period, up from R17m a year before.

In December, Joselowitz said he planned to sell up to R87m worth of the company’s stock, based on the prevailing price at the time, to diversify his investment portfolio.

At the time, he held about 4.8% of the company’s shares in issue, though sales of stock in 2019 would reduce his stake to 3.2%.

Since that announcement, MiX’s share price has fallen from R10, or close to a record high, to R8.35. The stock was 1.2% lower on Thursday afternoon.​

“My stake in the company represents a significant portion of my investment portfolio and I have reached a stage of life where I need to create some liquidity to partially diversify my investments and begin thinking about estate planning,” Joselowitz said in December.

hedleyn@businesslive.co.za

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