Cartrack on track for seventh year of double-digit growth
The vehicle recovery company passed 1-million subscribers in its six months to end- August, when operating profit rose by a quarter
Cartrack, which provides fleet-management and stolen-vehicle recovery services, is on track for a seventh-consecutive year of double-digit revenue growth, having surpassed 1-million subscribers in its six months to end-August.
The group, whose share price is up almost two thirds in 2019, said on Wednesday interim operating profit rose 24% to R316m to end-August, while cash generated from operations surged 70% to R446m.
Subscription revenue now accounts for 96% of group revenue, it said, and is expected to increase further.
The group’s SA segment posted subscription revenue growth of 26%, while the Asia Pacific region saw subscription revenue jump 46% to R105m, upon a 39% increase in subscribers in that region.
The Asia Pacific region had the greatest potential in the long term, Cartrack said.
The group registered its sixth consecutive year of double-digit revenue and subscriber growth in its year to end-February 2019.
Cartrack CEO Zak Calisto said on Wednesday the group was experiencing consistent growth in SA, augmented by a strong performance in Asia and Europe.
“Regions outside of SA now account for 27% of the group’s revenue, showing increased appetite for sophisticated data and business mobility solutions,” said Calisto.
“We remain firmly committed to long-term profitability by diversifying our customer base, innovating our technology platforms, and scaling international operations.”
Cartrack’s share price closed at R23.30 on Tuesday, having gained 62.94% in 2019.