Dual-listed MiX Telematics’ subscription revenue increased by 18% year-on-year to just under R1.7-billion for the financial year ended March 31.

On a constant currency basis, subscription revenue increased by 16.3%.

Benefitting from an increase of 73 600 subscribers from April 2018 to March 2019, an increase of 10.9%, the company’s subscription revenue also benefitted from a higher average revenue per user.

The solid results follow after the  mobile asset management solutions provider upwardly revising its long-term adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) margin target to over 35% in January, compared with 25.8% in fiscal 2018.

Adjusted Ebitda was R602.8-million, compared with R441.9-million for fiscal 2018.

The upward revision comes on the back of margins expanding by almost 500 basis points to 30.5% and record positive free cash flow of R177-million.

Total revenue for the period was R1.9-billion, an increase of 15.4% compared with revenue of R1.7-billion for the prior comparable period. On a constant currency basis, total revenue increased by 13.5%, while hardware and other revenue was R282.6-million, compared with R277.9-million in 2018.

Gross profit was just over R1.3-billion, an increase of 17.3% compared with R1.1-billion in 2018. Gross profit margin was 66.8%, compared with 65.7% in 2018.

Operating profit was R338.9-million, compared with R215-million in fiscal 2018, with an operating margin of 17.2% compared with the 12.6% in the prior comparable period. This margin expansion, the company said on Tuesday, was attributable primarily to the revenue growth leveraging the group's fixed overheads and ongoing cost management initiatives.

Operating expenses represented 49.7% of revenue, compared with 53.4% of revenue in fiscal 2018.

Meanwhile, earnings per diluted share were 35c, compared with 32c in 2018.

For 2019, the company explained, the calculation was based on diluted weighted average ordinary shares in issue of 583.6-million, compared with 574-million weighted average ordinary shares in issue during 2018.

2020 OUTLOOK

Looking ahead to the 2020 fiscal year, MiX Telematics anticipates subscription revenue to be between R1.94-billion and R1.96-billion, which would represent subscription revenue growth of 14.3% to 15.5% compared with fiscal 2019.

On a constant currency basis, this would represent subscription revenue growth of 12.8% to 14%.

Revenue, meanwhile, is anticipated to be between R2.18-billion to R2.21-billion, which would represent revenue growth of 10.4% to 12% compared with fiscal 2019. On a constant currency basis, this would represent revenue growth of 8.9% to 10.5%.

Adjusted Ebitda is anticipated to be between R680-million and R701-million, which would represent growth of 12.8% to 16.3% compared with 2019.

Adjusted earnings per diluted ordinary share of 45.1c to 50.2c are based on a weighted average of 585-million diluted ordinary shares in issue, and based on an effective tax rate of 28%.

For the first quarter of fiscal 2020, the group expects subscription revenue to be in the range of R451-million to R457-million, which would represent subscription revenue growth of 15.5% to 17.1% compared with the first quarter of fiscal 2019.

On a constant currency basis, this would represent subscription revenue growth of 10.5% to 12.1%.