Karooooo’s latest report highlights significant growth in subscriber numbers, showcasing South Africa’s leading role in this expansion.
In the first quarter of FY2027, Karooooo announced a record net addition of 142,472 subscribers, marking a 70% increase. South Africa alone experienced a remarkable 92% surge in subscriber growth, contributing to a total of 2.8 million subscribers across the group.
Karooooo Reports Record Subscriber Growth in South Africa
Karooooo, the parent company of Cartrack, has achieved unprecedented growth in its subscriber base. The company reported a total of 142,472 net subscriber additions in the three months leading to May 31, 2026. This impressive figure reflects a 70% increase compared to the previous year.
South Africa emerged as the standout market, with local subscriber additions soaring by 92%. This surge has propelled Cartrack’s total subscriber count in South Africa to nearly 2.12 million, an 18% increase year-on-year. The subscription revenue growth in this region accelerated to 24%, further emphasizing South Africa’s pivotal role in Karooooo’s success.
Karooooo’s Financial Performance and Challenges
Karooooo’s group subscription revenue rose by 19% to R1.35 billion, while operating profit reached a record R410 million, reflecting a 16% increase. However, the company faced challenges as sales and marketing expenses surged by 32%, resulting in a narrowed operating margin of 28%.
Despite the positive growth figures, the strengthening rand negatively impacted revenue from international markets. In constant currency, Cartrack’s subscription revenue grew by 21%, while annualized recurring revenue increased by 19% in rand terms, reaching R5.4 billion.
Future Outlook and Strategic Investments
- Karooooo reaffirmed its full-year guidance for Cartrack subscription revenue between R5.7 billion and R6 billion.
- Forecasted growth of 18-24% for the upcoming year.
- Expected earnings per share between R38.50 and R40, indicating a 21% growth over FY2026.
- Continued investment in in-vehicle IoT devices and stock for future installations.
Karooooo’s record subscriber growth underscores the strength of South Africa’s market in driving the company’s expansion.
