#Israel #Ituran Location #Telematics Services #Subscription Growth #Azour

Ituran's Financial Highlights for Q4 and Full Year 2024

Ituran Location and Control Ltd. (NASDAQ: ITRN) has officially unveiled its consolidated financial outcomes for the fourth quarter and the entire year of 2024, showcasing substantial growth across various metrics. This report outlines the key insights from this financial performance and the company's outlook for the future.

Impressive Annual Performance

In 2024, Ituran reached a remarkable milestone with a year-end subscriber count of approximately 2.4 million, reflecting a net addition of 157,000 subscribers throughout the year. This growth showcases the company’s strong market presence in Latin America and Israel. Overall, revenues for the year soared to $336.3 million, marking a 5% increase year-over-year. Alongside revenue growth, the net income also rose to $53.7 million, with an 11% increase compared to 2023.

Financial Metrics Overview

• - Subscribers Added: 157,000
• - Total Revenue: $336.3 million
• - Net Income: $53.7 million
• - EBITDA: $91.3 million
• - Operating Cash Flow: $74.3 million

This productive year also enabled Ituran to declare a total of $34 million in dividends, enhancing its commitment to returning value to its shareholders. A significant increase in the dividend policy by 25% has been set to $10 million per quarter, effective immediately.

Strong Fourth Quarter Highlights

The fourth quarter specifically exhibited robust performance, as Ituran recorded revenues of $82.9 million, reflecting a 7% increase from the same period in the previous year. Notably, the gross profit also saw an uptick, hitting $41.1 million, which accounts for 49.6% of total revenues.

During Q4, the company achieved:

• - Net Subscriber Growth: 40,000
• - Revenue Growth: 7% year-over-year
• - Gross Margin on Subscriptions: 59.6%

Management's Perspective

Eyal Sheratzky, Co-CEO, expressed optimism regarding Ituran’s trajectory, stating, “2024 was a strong year for Ituran, marked by solid growth and operational improvements. We are seeing significant demand for our location-based products and telematics services and anticipate adding between 180,000 and 200,000 subscribers in 2025.” This projection underscores a focused vision on enhancing product offerings and tapping into emerging market trends.

The Road Ahead

Looking forward, Ituran plans to continue its expansion into existing markets while exploring opportunities within new regions. The investments made in advanced technology and services position the company well for accelerated subscriber growth and sustained profitability.

The financial outlook is bolstered by stable cash flows and a strong balance sheet, as Ituran maintains a net cash position of $77.4 million. The strategic emphasis on innovative solutions and customer-centric services will likely fortify its competitive edge in the telematics industry.

In summary, Ituran Location and Control Ltd. ended 2024 not only on a high note but also with substantial momentum heading into 2025. The combination of solid financial performance, strategic growth plans, and an enhanced dividend policy reinforces the company’s commitment to its stakeholders and positive market perception.

For additional insights and analytical discussions regarding the recent results, Ituran will host a video conference call today at 10 AM ET. Interested participants can register to join the conversation and learn more about the company's financial outlook and operational strategies.

For more comprehensive information or to access investor relations materials, please visit Ituran's official website.