Fleet management and vehicle-tracking company MiX Telematics said on Thursday it had lowered it growth forecast after upping its spend on sales and marketing, but still expects double-digit subscription revenue growth for its year to end-March 2020.

The company reported subscription revenue growth of 14.3% to R926m in it six months to end-September from the prior comparative period, but has revised its guidance to between 11.4% and 12.3% growth for its full year.

The group, which operates in Africa, South America, Europe and the Middle East, had said at its first-quarter results it expected subscription revenue growth of between 14.3% to 15.5% for the full year.

Earnings before interest, taxation, depreciation and amortisation (ebitda) rose 17% to R326m in the six months to end-September, with the company’s free cash flow rising 35% to R50m.

“Our results were once again highlighted by double-digit subscription revenue growth, solid subscriber additions as well as continued ebitda margin expansion and positive free cash flow” said CEO Stefan Joselowitz.

“Our revised guidance reflects some caution around macro issues, which are resulting in elongated sales cycles in certain verticals, as well as strategic investments in sales and marketing,” said Joselowitz.

At 9.15am MiX Telematics’s share price was unchanged at R7.71, having fallen 9.29% so far in 2019.


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