{"id":630512,"date":"2026-02-24T08:22:40","date_gmt":"2026-02-24T06:22:40","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=630512"},"modified":"2026-02-24T08:32:26","modified_gmt":"2026-02-24T06:32:26","slug":"netstar-brings-home-the-bacon","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/business\/630512-netstar-brings-home-the-bacon.html","title":{"rendered":"Netstar brings home the bacon"},"content":{"rendered":"\n

Altron says its operating profit grew more than 20% in its 2026 financial year, supported by strong performance in its Netstar vehicle tracking business.<\/p>\n\n\n\n

The South African technology company provided an overview of its performance in a voluntary operational update on Tuesday, 24 February 2026. <\/p>\n\n\n\n

It comes on the back of Altron’s notice to shareholders on 12 February that its headline earnings per share and earnings per share from continuing operations in the year are expected to increase by 30%. <\/p>\n\n\n\n

Altron said that operational momentum in the first half of the financial year (H1 2026) provided a solid foundation for a stronger performance in the last six months ending 28 February 2026 (H2 2026). <\/p>\n\n\n\n

“Continuing operations delivered low double-digit Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) growth year-to-date, and operating profit growth greater than 20%. <\/p>\n\n\n\n

“Excluding the change in Netstar’s depreciation policy, operating profit increased in the low-to-mid-teens.”<\/p>\n\n\n\n

Altron attributed the performance to disciplined focus on execution of its strategy across all businesses and reflects the benefit of a robust and diversified portfolio, despite varying operating conditions.<\/p>\n\n\n\n

“Deliberate focus on deployment of capital into higher-margin, annuity-revenue growth opportunities
continued in H2 FY2026, with further improvement in operating leverage,” it said.<\/p>\n\n\n\n

“Year-to-date, Altron’s Platforms segment has contributed approximately 45% to revenue, and approximately 90% to both EBITDA and operating profit.”<\/p>\n\n\n\n

The Platforms segment consists of the Altron Netstar vehicle and asset tracking service, which recorded “robust” double-digit revenue growth.<\/p>\n\n\n\n

“Netstar delivered a strong performance underpinned by solid growth in South Africa and early signs of progress in Australia,” Altron said. <\/p>\n\n\n\n

“The South African business continues to perform well, with sustained low double-digit growth in revenue and strengthening operational execution, delivering high-teen EBITDA growth year-to-date.”<\/p>\n\n\n\n

In Australia, Netstar’s recovery has been slower than initially anticipated due to once-off items affecting operating profit.<\/p>\n\n\n\n

“However, key performance indicators, including subscriber growth, cash flow and sales activity, have shown improvement,” Altron said.<\/p>\n\n\n\n

Overall, Netstar has delivered mid-to-high teen EBITDA growth. “Excluding the change in Netstar’s depreciation policy, operating profit increased in the high teens, in line with EBITDA growth,” it said.<\/p>\n\n\n\n

IT services struggling<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Altron’s overall revenue in H2 2026 was negatively impacted by continued poor performance at Altron Digital Business, the company’s IT services division.<\/p>\n\n\n\n

“The constrained operating environment for IT Services persisted in H2 FY2026 and is in line with market trends observed in South Africa and globally,” Altron said. <\/p>\n\n\n\n

However, Altron said there were early signs of improvement after the implementation of a comprehensive profit-improvement strategy and restructuring in December 2025. <\/p>\n\n\n\n

The division recorded two consecutive months of operating profitability in December 2025 and January 2026.<\/p>\n\n\n\n

Altron said this was clear evidence that the cost-reduction measures were gaining traction. “The business is now well-positioned to benefit from any upturn in IT services spend.”<\/p>\n\n\n\n

The company’s other divisions \u2014 FinTech, HealthTech, Security, and Documents Solutions \u2014 posted positive performance. <\/p>\n\n\n\n

Altron FinTech delivered high teen revenue growth, including an 80% increase in annuity income, due to growth in SME customers using its payments and collections platform and higher volumes in payments and collections.<\/p>\n\n\n\n

Altron HealthTech’s year-to-date EBITDA growth is in the low-twenties percent range and operating profit growth in the high teens.<\/p>\n\n\n\n

Altron Security also delivered double-digit revenue growth due to changes in sales mix. Its operating profit growth is broadly in line with its H1 2026 performance. <\/p>\n\n\n\n

Altron Document Solutions’ profit improvement strategy continued to deliver positive results, with a focus on higher-margin services resulting in year-to-date EBITDA improving more than 30%. <\/p>\n","protected":false},"excerpt":{"rendered":"

Altron says its operating profit grew more than 20% in its 2026 financial year, supported by strong performance in its Netstar vehicle tracking business.<\/p>\n","protected":false},"author":341042,"featured_media":607660,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[7983,103457,99212,55538,67159,98594,42988],"class_list":["post-630512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-altron","tag-altron-netstar","tag-car-trackers","tag-netstar","tag-south-african-tech-companies","tag-vehicle-trackers","tag-vehicle-tracking"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/630512"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=630512"}],"version-history":[{"count":10,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/630512\/revisions"}],"predecessor-version":[{"id":630527,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/630512\/revisions\/630527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/607660"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=630512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=630512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=630512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}