Altron’s vehicle tracking unit Netstar has surpassed 2-million subscribers as the group works to strengthen its position in the growing market.
This comes as the JSE-listed technology group expects to report higher full-year earnings amid a strong year-to-date performance and after the previous period was affected by provisions and impairments.
In the group’s platforms segment, Netstar surpassed 2-million subscribers, driving revenue growth and double-digit increases in ebitda and operating profit. However, softer trading conditions in the second half of the year, primarily attributable to sustained pressure in the Australian market, affected performance.
Netstar’s Australian operations are projected to report a loss for the year, but its SA operations maintained a strong trajectory, with double-digit year-to-date growth in subscribers, supported by growth in both the consumer and enterprise segments.
Altron has been under pressure to expand units such as Netstar after the unbundling of Bytes Technology. Once a dominant presence in the sector, Netstar had lost ground to competitors such as Mix Telematics, which recently merged with Powerfleet, and Karooooo-owned Cartrack.
“Reaching 2-million subscribers is a proud moment for Netstar and it wouldn’t have been possible without the trust of our customers and the dedication of our employees,” said Grant Fraser, MD of Netstar.
“This milestone inspires us to continue innovating, expanding our services and delivering solutions that make our roads safer and businesses more efficient. Reaching 2-million subscribers is just the beginning. We are excited about the future and look forward to achieving even greater heights together.”
Elsewhere, headline earnings per share (HEPS) for continuing operations for the 12 months to end-February will be at least 40% (41c) higher than the 103c reported for the previous year.
Group HEPS would be more than 100% higher than the loss of 29c reported a year ago, the group said in a statement on Monday.
Altron’s continuing operations, adjusted for the sale of the ATM business, delivered low single-digit revenue growth, with strong double-digit growth in earnings before interest, tax, depreciation and amortisation (ebitda) and operating profit, demonstrating delivery of improved efficiency and operating leverage across the business, it said.
Altron concluded the sale of its ATM hardware and support business unit to NCR Corporation for $10m (R186.6m at the time) in 2023.
Altron FinTech and Altron HealthTech, the group’s other platform businesses, grew year-to-date revenue, ebitda and operating profit.
Within the IT services segment, Altron Digital Business, adjusted for the sale of the ATM Business, maintained flat year-to-date revenue, due to the delay of two projects into the 2026 financial year.
As previously guided, full-year ebitda and operating profit was expected to be weaker than the comparative period due to reduced spending by two large customers in the first half of the year and non-recurring project expenses relating to historic contracts.
Altron Document Solutions had been reintegrated into continuing operations. Its profit improvement strategy was delivering positive results, Altron said.
Though year-to-date performance demonstrates substantial improvement, Altron Nexus has generated a year-to-date loss. Altron was progressing with the active disposal process of Altron Nexus and is in advanced discussions with a potential purchaser, it said.
The company will release its annual results on May 26.
Reaction to the Altron group’s trading update was dull, and the share closing 2.93% weaker at R20.87 on Monday.
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