Cartrack subscriber base swells
Cartrack says the Cartrack subscriber base has grown 19% in the year ending February 2017, despite a challenging environment.
“Exchange rate volatility and severe economic challenges within the Africa-Other segment have negatively impacted our consolidated revenue and profit,” explained Global chief executive officer, Zak Calisto.
“We increased our investment in distribution and operating capacity. And the start-up costs for establishing the US operation were incurred with minimal revenue generated to date, as formal trading has not commenced,” he said.
The Group says its global subscriber base has grown from 502 849 to 600 610.
Asia Pacific and Europe contributed strongly, with 225% and 26% subscriber growth, respectively, while the South African subscriber base rose 17%. However, the Africa-Other subscriber base decreased 2%.
Group operating expenses increased 12%.
“We remain confident that continued investment in technology development and customer-centric infrastructure across various regions will deliver meaningful revenue growth in the short-to-medium term with a commensurate increase in operating profit margins.”
The company’s global telematics database continues to grow in volume and granularity, and new revenue streams are being researched.
The telematics industry is experiencing robust global growth amidst a rise in innovation.
Current and future customers require ever-increasing information about their assets and people to more effectively achieve their goals,” continues Calisto.
“Our ambition is to become a more integral part of their lives and shift from a service provider relationship to becoming business partners.
“This requires a continued and significant investment in technology and intellectual property, and a further expansion of our distribution and operating capacity. He adds that the global telematics industry is showing signs of further consolidation.
“Opportunities to provide economies of scale, as well as improved subscriber value, will be considered.”
The South African market remains under-penetrated, and Calisto believes there are opportunities in the lower LSM, fleet, asset and people tracking markets.
“The order book in Europe is strong while new sales are being actively pursued. Asia Pacific is gaining operational mass as a region, with a strong sales pipeline and many cross-border opportunities ready to be exploited.
“The Africa-Other operations will be closely monitored and managed in anticipation of a more favourable economic environment,” concludes Calisto.
The company expects to continue double-digit subscriber and revenue growth in the foreseeable future.