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| Statement |
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| This follow the company’s continuing strong profitability, ongoing positive cash flow and strong balance sheet |
| And since our solution, I think is the most excellent one, so we get more and more requests for new subscribers |
| As our strong financial result demonstrate, our business is in very good shape and resilient against challenges |
| In local currency terms, fourth quarter net income grew by 28% year-over-year |
| Our constantly growing subscriber growth will continue to translate into increased revenues with faster growing profitability over the long-term due to the operating leverage inherent to our business |
| Our subscriber base continued to show strong growth adding 42,000 subscribers in the quarter, well ahead of our expectations of between 30,000 and 35,000 that we shared with you last quarter |
| We are all the more pleased given that we achieved these strong results despite difficult first quarter in which our country faced a major terrorist attack at the start of the quarter, which resulted in a war which effectively pause the economy for a few weeks |
| I want to add that I am very proud of the courage and commitment of the Ituran team both in Israel and globally, especially in the challenging time we have had recently and wish to personally thank them for their reliance and dedication during these times |
| We are pleased with our 2023 results, which was a record year for Ituran |
| Given our ongoing growth, our solid profitability, our strong cash generation each quarter, and our strong net cash level for the second quarter in a row, we have decided to increase the dividend |
| Overall, as you can imagine, we are pleased with our relative strengths in Q4 and furthermore, the overall picture in 2023 is very strong |
| We are very pleased to share the fruits of our success and we see our dividend as well as our ongoing buyback program as a reward to our loyal shareholders for the long-term support of our company |
| I think that’s a great help for long-term investors as well |
| In summary, 2023 was a solid year of performance for Ituran in all respects and we believe that 2024 will continue on this trend |
| We know that about two years ago we made a very impressive round when the Bringg raised more than $100 million |
| Revenues for full year 2023 were a record $320 million, a 9% increase over the $293.1 million reported in 2022 |
| Congratulations on a very nice quarter and just all the all around guidance |
| The subscriber base expanded to 2,252,000 by year end, marketing an increase of 42,000 from the end of the previous quarter and 186,000 over 2023 |
| In local currency terms, fourth quarter EBITDA grew by 8% compared with that of the fourth quarter of last year |
| Revenues from subscription fees were a record $234.5 million, representing an increase of 12% over 2022 |
| In local currency terms, fourth quarter revenues grew by 6% compared with that of the fourth quarter of last year |
| Abba Horwitz Very good |
| Last quarter, we increased the ongoing dividend from $3 million to $5 million per quarter, and this quarter, we are further increasing the quarterly dividend to $8 million per quarter |
| Net income for the fourth quarter was $12 million or diluted earnings per share of $0.60, an increase of 26% compared to $9.6 million or diluted earnings per share of $0.47 in the fourth quarter of last year |
| We expect the subscriber growth to continue growing at around current rate of approximately 35,000 to 40,000 net new subscribers per quarter |
| EBITDA for 2023 was a record $87 million, or 27.2% of revenues, an increase of 10% compared to $78.9 million or 26.9% of revenues in 2022 |
| This represents a 60% increase in the ongoing quarterly dividend payment compared with that of the prior quarter and 167% increase over the dividend paid in the many quarters prior to that |
| As has been true throughout our long history and will continue ahead over the long-term |
| Revenues from subscription fees in the quarter were $59.4 million, an increase of 10% over the fourth quarter 2022 revenues |
| Fourth quarter revenues were $77.8 million, a 4% increase compared with revenue of $74.9 million last year |
| Statement |
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| Product revenues in the quarter were $18.4 million, a decrease of 13% year-over-year and in local currency terms, product revenues decreased by 9% year-over-year |
| This new challenge followed by many challenges that everyone has faced over the past few years, including the Corona pandemic, supply chain issues and recently a slowing global economy |
| The decline in product revenue was mainly due to the – hardware installation in Israel following the outbreak of war on October 7 |
| The initial impact of the war on new car sales in Israel, which drives our new subscribers in that country and aftermarket product sales, temporarily caused a complete pause in the local car market |
| dollar terms, was impacted by a significant devaluation of the Argentinian peso as well as the temporary weakness in the Israeli shekel against the U.S |
| Fourth quarter revenue was somewhat impacted by the outbreak of war in Israel on October 7 |
| And while we’re considering this number of subscribers with assuming that the output is not going to change dramatically, because some of the services that we provide are generating lower ARPU |
| And if I look at the EBITDA guidance, it’s lower |
| But when we provide guidance, we have to be conservative with the guidance |
| And by the way, add to this the operating leverage assumptions, we are not expecting that the growth of our expenses will decrease, let’s say, every year |
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