Cartrack Subscription Revenue Rises 20% to 1,415 Million Rand as Subscriber Base Expands
Key Facts
Subscription revenue at Karooooo's Cartrack platform rose 20% year-on-year to 1,415 million rand in the second quarter of fiscal 2027, according to the company's earnings announcement. The results cover the period ended 31 August 2026, with growth in the subscription business and group earnings compared with the same period a year earlier. The company had scheduled the release of its results for 19 October 2026, after 4 p.m. Eastern Time, following the U.S. market close. Group operating profit rose 19% to 422 million rand during the quarter, according to the earnings announcement. Earnings per share also increased 18% year-on-year to 9.28 rand.
Cartrack added a net 94,516 subscribers during the period, according to the company's results presentation. That represents a 34% increase in net additions compared with the corresponding quarter of the previous fiscal year. The company described the additions as a second-quarter record, as the platform's subscription base continued to expand. Total subscribers stood at 2,899,210 at the end of the period, according to figures in the company's announcement. The platform serves more than 125,000 business customers using its solutions, according to the results presentation.
Karooooo attributed Cartrack's subscription revenue growth primarily to new customer acquisition and increased sales of solutions to new and existing customers. Its disclosure identified the drivers as "new customers and sales of video solutions and Cartrack Tag," referring to the products that supported subscription growth. Business customer retention, weighted by annual recurring revenue, stood at 95% at the end of the period, according to the company's presentation. The platform's annual recurring revenue rose to 5,708 million rand, according to the earnings announcement to the market. That represents 19% year-on-year growth in recurring revenue, alongside increases in subscribers and sales of solutions to customers.
Cartrack's subscription revenue grew 23% year-on-year in constant currency, according to the results presentation. Management said the stronger rand was weighing on contributions from most overseas markets when their results were translated into the South African currency. Reported constant-currency growth exceeded growth measured in rand, reflecting the effect of translating those markets' results on the platform's revenue. In South Africa, subscription revenue growth accelerated to 25% compared with the same period a year earlier, according to the company's presentation. In Asia, subscription revenue grew 25% in constant currency, with the region's performance measured on that basis.
In the logistics business, delivery services revenue at Karooooo's subsidiaries reached 189 million rand in the second quarter. That revenue grew 36% compared with the same period a year earlier, according to the company's announcement. Cartrack's adjusted earnings before interest, taxes, depreciation and amortisation margin was 46%, according to the results presentation. At group level, adjusted earnings per share rose 12% to 9.28 rand, a non-IFRS measure. Quarterly free cash flow was about 41 million rand, also a non-IFRS measure, according to the company's disclosure.
Karooooo maintained its fiscal 2027 outlook for Cartrack subscription revenue, according to the earnings disclosure. The company is targeting subscription revenue of between 5,700 million and 6,000 million rand in constant currency. The range covers Cartrack's subscription business for the current fiscal year, with management continuing to calculate its annual outlook on a basis that excludes exchange-rate movements. The company scheduled its second-quarter results webinar for 20 October 2026, according to its disclosure timetable announcement. The webinar is scheduled to begin at 8 a.m. Eastern Time.