Ituran Location and Control Ltd. (ITRN) announced its consolidated financial results for the second quarter of 2024, highlighting continued strong profitability and a positive outlook for the future. The company’s subscriber base grew significantly, reaching 2,329,000 by the end of June 2024, representing a net increase of 38,000 subscribers during the quarter. This growth was driven by robust demand for Ituran’s location-based products and telematics services, particularly from its new initiatives.
Revenue for the second quarter reached $84.9 million, a 4% increase year-over-year. While the strengthening US dollar impacted the dollar-denominated revenue, the company witnessed a 6% revenue growth in local currencies. This demonstrates the inherent strength of Ituran’s business, which is experiencing accelerated growth in its core geographies.
Net income for the quarter rose to $13.1 million, a 7% increase compared to the same period last year. Similarly, EBITDA grew to $23.1 million, reflecting a 6% increase year-over-year. These positive financial results demonstrate the company’s commitment to delivering shareholder value.
Reflecting its strong performance and confidence in its future prospects, Ituran’s Board of Directors declared a dividend of $8 million, or $0.39 per share. This dividend reflects the company’s consistent strong profitability, positive cash flow, and robust balance sheet.
Looking ahead, Ituran remains optimistic about its growth trajectory for the remainder of 2024. The company anticipates continued revenue and profit growth, adding approximately 35,000 to 40,000 net new subscribers per quarter throughout the year. For the full year 2024, Ituran expects EBITDA to be between $90 million and $95 million. Furthermore, the company has set a target of surpassing $100 million in EBITDA in 2025. These projections are based on the assumption that exchange rates in Ituran’s operating geographies do not significantly worsen against the US dollar and the current global macroeconomic and political situation in Israel does not materially deteriorate.
Eyal Sheratzky, Co-CEO of Ituran, expressed his satisfaction with the company’s strong second-quarter performance, highlighting the continued growth in the subscriber base and the ongoing solid financial performance. He emphasized that the business remains fundamentally strong, showcasing accelerated growth in local currency terms. Sheratzky also reiterated Ituran’s commitment to rewarding shareholders with a high level of dividends, reflecting the company’s ongoing success and appreciation for their support.
Ituran’s positive second-quarter results and optimistic outlook signal a strong future for the company. The continued growth in subscribers and revenue, coupled with a robust financial performance, positions Ituran as a leading player in the emerging mobility technology field, offering a comprehensive suite of location-based services for the connected car.
