Fleet and mobile asset management solutions provider MiX Telematics expects subscription revenue to increase by 5% to 6% year-on-year, to about R1.2-billion in 2017.
This came on the back of a successful second quarter, which saw subscription revenue increase to R301-million, a 6% year-on-year surge, and an 8% year-on-year increase in subscribers to 585 000.
This translated to an operating profit of R26-million, representing a 7% margin, with adjusted earnings before interest, taxes, depreciation and amortisation increasing 18% to R66-million.
"Our second-quarter results were highlighted by improved activity from energy-sector customers late in the quarter, as well as ongoing momentum in some of our other vertical markets," said CEO Stefan Joselowitz.
He added that the company continued to see that more of its customers were opting for fully bundled contracts, increasing the long-term value of these relationships.
“Looking forward, we remain confident in our ability to manage our business to deliver sustained profitable growth, despite current macro headwinds in some of the geographies.
“We believe that the combination of a growing subscriber base, expanding average revenue per user from premium customers, and a continued investment in the business, positions MiX to reaccelerate performance in the second half of the year and beyond,” said Joselowitz.