Take a bow Cartrack, for successfully reaching yet another consecutive target of 700,000 active subscribers. About six months ago, the company reached its 600,000 subscriber milestone. Cartrack’s 2017 interim results boasted an increase in headline earnings per share of 20%, revenue increased by 14% and subscription revenue was up 19%.
An increase in active subscribers translates into further growth in annuity revenues, and is a key determinant in the ability of the company to grow its base globally.
Cartrack is a leading global provider of fleet management (Fleet), stolen vehicle recovery (SVR) and insurance telematics services, with a focus on technology development to enhance customer experience. The company’s robust growth can be attributed to its strong technology platform which allows it to scale globally, as well as an annuity-based financial model, which creates a steady cash flow stream. 75% of the company’s revenue is generated in South Africa.
Cartrack listed on the JSE in 2014 and has seen its share price nearly double since then.
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Cartrack currently has a presence in 24 countries across Africa, the Middle East, Europe, and Asia Pacific, and more recently has established an office in the USA. The robust subscriber growth was driven by strong performances in Asia, Europe and South Africa. The South African market is differentiated by the stolen vehicle recovery service that is provided, a sector in which Cartrack has performed consistently well. The company has managed to maintain an exceptional recovery rate of around 94% over many years.
Cartrack remains at the forefront of the related telematics expansion and continues to drive innovation and application through its interaction with customers and strategic researchand development activities.
According to Gartner Inc, a leading information technology research and advisory company revenue in the global commercial fleet telematics market will increase to US$55 billion by 2021, almost twice the current market revenue, and will grow at an aggregated rate of 18% per year between 2016 and 2021.
In its annual accounts the company says "The South African market, particularly in the lower vehicle value segment, remains underpenetrated. Opportunities to provide customer-centric solutions that put Cartrack customers in control will be exploited.
Notwithstanding global economic and foreign exchange volatility, Cartrack expects to continue double digit subscriber and revenue growth in the foreseeable Future."
Jeremy Woods trained for three years as a journalist on the Herts Advertiser, St Albans, in the U.K. Once qualified, he left England to work as a crime reporter on the Vancouver Sun in Canada. After three years, he worked for the Los Angeles Times as a trainee financial journalist, spending most of his time reading company accounts and finding publishable stories in them. He moved to South Africa and for the last five years in journalism worked for the Sunday Times, Business Times, as Investment Editor. He has also published a financial thriller called "Special Payments", which was a best-seller on publication, and optioned three times for a film.