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CHRIS GILMOUR: Cartrack reports yet another successful year as it outpaces most of its competitors
The next 12 to 18 months will be much better, aided by an increasing Southern Africa theft rate
Cartrack, the pre-eminent JSE-listed telematics operator, delivered another strong set of results for the year ended February 28 2018. It is an industry leader, with very few telematics companies anywhere in the world growing as fast, according to CEO Zak Calisto. The company is now represented in 24 countries on five continents. The global demand for telematics services just keeps on growing, from private individuals, vehicle fleet owners, insurance companies and correctional services organisations. This is due to regulatory compliance requirements, increasing insurance telematics, and driver safety and security — and annual global growth estimates range from 17% to 22% per annum.This demand growth, coupled with high customer retention rates, makes Cartrack’s revenue largely of an annuity nature. Annuity income, being income associated with subscribers rather than from customers who buy the software outright, is 88% of Cartrack’s total revenue, and is growing. "Customer retention i...