South African tycoon Zak Calisto’s Karooooo to pay $33.4 million dividend amid mixed Q1 2025 results

Feyisayo Ajayi -

Key Point

  • Karooooo declares $33.4 million dividend despite Q1 2025 revenue falling short of expectations at $57.8 million.
  • Revenue up 10.03 percent year-over-year to $57.8 million, driven by a 15 percent increase in subscription revenue.
  • Cartrack subscribers up 17% to 2.05 million, reflecting strong customer acquisition and growth.

Karooooo Limited, a Singapore-based mobility platform led by South African businessman Zak Calisto, announced a $33.4 million dividend following a resilient financial performance in 2023. However, the company’s revenue for the first quarter of its 2025 fiscal year fell short of analyst expectations, declining to $57.8 million.

Despite the revenue shortfall, Karooooo, the owner of Cartrack Holdings, reported a 10.03 percent increase in revenue from R996.8 million ($55.9 million) in Q1 2024 to R1.06 billion ($57.80 million) in Q1 2025.

The surge in revenue was driven by a robust 15 percent increase in subscription revenue, which reached R964 million ($52.54 million), up from R836 million ($45.56 million) in the same period the previous year. Operating profit surged by 34 percent to R300 million ($16.35 million), with the operating profit margin increasing to 29 percent.

CEO highlights strong customer acquisition and technological advancements

Zak Calisto, CEO and founder of Karooooo, expressed confidence in the group’s ability to sustain strong customer acquisition and profitable growth. “The group’s robust results, distribution expansion, vertically-integrated cloud platform enhancements, new generation AI-powered telemetry, and the prospect of improved economic conditions in South Africa give us confidence that we can continue to extend our long-standing track record of strong customer acquisition and profitable growth at scale,” he said.

Cartrack, Karooooo’s flagship telematics and fleet management business, saw a notable 17 percent increase in subscribers, rising from 1.76 million last year to 2.05 million as of May 31, 2024. This reflects strong customer acquisition momentum.

Karooooo’s strategic capital allocation supported its strong growth, profitability, and cash generation, with net cash and cash equivalents of R950 million ($51.91 million) as of May 31, 2024. Investments in telematic devices and a new central office in South Africa led to a R94 million ($5.14 million) increase in property, plant, and equipment.

The company declared an interim dividend of $1.08 per ordinary share, translating to R609.59 million ($33.35 million). The dividend will be paid on August 12, 2024, to shareholders on the JSE and on August 14, 2024, to those on the Nasdaq, with a record date of August 8, 2024.

Global leadership and future prospects

Under Zak Calisto’s leadership Based in Singapore, Karooooo has emerged as a global leader, with a network of over 1,950,000 connected vehicles and equipment. The company assists thousands of enterprise customers in their digital transformation efforts, serving more than 1.7 million users worldwide across 23 countries on five continents.

Karooooo’s Q1 2025 results highlight substantial subscriber growth and robust financial performance. Despite lower revenue, the company declared a $33.4 million dividend, reflecting confidence in long-term growth and commitment to shareholders. With ongoing innovation and expansion, Karooooo is poised to leverage new opportunities in telematics and fleet management.