The leading global provider of fleet and mobile asset management solutions said subscribers increased by 14% in the year to March bringing the total to over 512,000, with subscription revenue increasing by 17% to R998 million from R854 million.
Operating profit was R149.9 million, down from R171.5 million the corresponding period a year before, with the operating margin down to 10.8%, from 13.5%. The company said the changes were the result of an increased investment in sales and marketing as well as administration and other costs increasing by R89.4 million, or 16.8%, primarily as a result of increased employee costs incurred to support the company’s growth initiatives.
The company, which is listed in Johannesburg and New York and has customers in more than 120 countries, said profit for the year was down from R151 million to R149 million. This translated into headline earnings per share of 19 cents, down from 21 cents the year before.
Chief Executive Officer Stefan Joselowitz said: “We were delighted to break through the half-million subscribers level as few telematics solutions providers have achieved this type of critical mass.”