Cartrack's earnings reveal strong growth

Cartrack, a global provider of fleet management, stolen vehicle recovery, and insurance telematics services, has announced its financial results, showing a final gross cash dividend of 35 cents per ordinary share and headline earnings per share of 85 cents, up 6%. In an exclusive interview with CNBC Africa, Cartrack CEO Zach Calisto discussed the company's performance and future outlook. Calisto acknowledged challenges faced in Africa due to currency devaluation and economic shrinkage, leading to a slight decrease in subscribers. However, the company saw an 11% increase in profits in local currency terms, with normalised earnings up by 12%. Calisto highlighted that despite currency volatility impacting earnings, Cartrack remains focused on organic growth while avoiding currency hedging due to timing uncertainties. In terms of operational performance, Calisto noted substantial growth in Europe, with a 27% increase in subscribers, and in South Africa, with a 17% rise. Asia also showed promise with a growth rate exceeding 200%, although from a lower base. While African markets experienced flat growth, Calisto expressed optimism for potential recovery in the next 24 months with improved commodity prices and political stability. Addressing the industry's competition, he suggested that consolidation could benefit consumers and overall economic efficiency by streamlining operations. Reflecting on technological advancements, Calisto emphasized Cartrack's transition from stolen vehicle recovery to fleet management, optimising workforce operations and smart transportation solutions. He underscored ongoing technological development in the mobility sector, signaling the company's readiness to leverage new innovations. Amid South Africa's economic challenges, including recent credit downgrades, Calisto remained cautiously optimistic about Cartrack's ability to withstand market headwinds and sustain growth through market penetration and volume expansion. Discussing future prospects, Calisto highlighted the potential for technology to address traffic and transportation challenges, emphasizing the need for regulatory support and public-private cooperation to optimize decision-making processes. He envisioned a future where mobility and transportation systems would undergo significant transformation, driving efficiency and accessibility for businesses and individuals alike. As Cartrack prepares for these changes, Calisto remains confident in the company's ability to adapt and thrive in the evolving landscape of mobility solutions. In conclusion, Cartrack's strong financial performance and strategic outlook position the company as a key player in the global fleet management and telematics industry, with a commitment to innovation and sustainable growth amidst economic uncertainties and technological disruptions.