Core Insights - Ituran Location and Control Ltd. has partnered with BMW Motorrad Brasil to enhance telematics services for motorcycle riders in Brazil, significantly expanding Ituran's total addressable market [1][4] - The partnership aims to provide advanced safety and connectivity features for BMW Motorrad customers, including real-time location tracking and vehicle recovery services [2][3] Company Overview - Ituran is a leader in mobility technology, offering location-based services and is the largest OEM telematics provider in Latin America, with over 2.5 million subscribers [7][8] - BMW Group is a leading premium manufacturer of automobiles and motorcycles, with a global sales network in over 140 countries and a workforce of 159,104 employees as of December 31, 2024 [5][6] Partnership Details - The collaboration will provide BMW Motorrad customers with 24 months of free access to Ituran's services for new motorcycles, while existing customers will have special conditions to access the same features [3] - The initiative is expected to strengthen Ituran's innovation leadership in Brazil, a key market for its global growth [4]

Financial Data and Key Metrics Changes - First quarter revenues reached a record $86.5 million, a 2% increase compared to $85 million in the same quarter last year [13] - In local currency, revenues grew by 7% year over year [14] - EBITDA for the quarter was $23.3 million, representing 26.9% of revenues, an increase of 4% compared to $22.3 million or 26.3% of revenues in the same quarter last year [15] - Net income for the first quarter was $14.6 million, or diluted earnings per share of $0.73, a 12% increase compared to $13 million or diluted earnings per share of $0.66 in the same quarter last year [16] - Cash flow from operations for the quarter was $15.5 million, with net cash including marketable securities at $75.7 million as of March 31, 2025 [16] Business Line Data and Key Metrics Changes - Subscription fee revenues were $62.2 million, a 2% year-over-year increase, and in local currency, an increase of 9% [15] - Product revenues were $24.3 million, a 1% year-over-year increase, and in local currencies, an increase of 3% [15] - The subscriber base expanded to 2,508,000 by the end of the first quarter, an increase of 99,000 from the previous quarter [15] Market Data and Key Metrics Changes - Geographic revenue breakdown: Israel 55%, Brazil 23%, and the rest of the world 22% [15] - The strengthening of the US dollar against local currencies, particularly the Brazilian real and Mexican peso, had a deflating impact on financial results when denominated in US dollars [6] Company Strategy and Development Direction - The company aims to add between 220,000 and 240,000 new subscribers in 2025, with a focus on long-term growth in subscriber additions [11] - A new telematics service agreement with Stellantis is expected to broaden OEM relationships globally and contribute to future growth [9] - The company is exploring additional OEM agreements and expanding its service offerings in South America [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth throughout 2025, driven by strong demand for location-based products and telematics services [5] - The company acknowledged the impact of currency fluctuations on financial results but emphasized growth in local currencies [6] - Management highlighted the importance of the new OEM agreement with Stellantis as a strategic milestone [9] Other Important Information - The Board of Directors declared a dividend of $10 million for the quarter, reflecting the company's strong profitability and cash flow [10] - The current dividend yield on an annualized basis represents a return of around 6% [11] Q&A Session Summary Question: Does the new agreement with Stellantis imply setting up equipment for each produced car? - The current agreement is to provide services based on previously implemented technology, with potential for future expansion [19] Question: What primarily affected the ramp-up of the subscription base? - The initial jump in subscribers was due to a bulk acquisition of Stellantis car owners, but future growth is expected to return to around 40,000 per quarter [25] Question: What is the outlook for the insurance market in Latin America? - There is high demand for car sales solutions, and while UBI solutions are not currently widely accepted, competition may create opportunities in the future [33] Question: How does the company manage attrition rates and ARPU? - The company expects to convert customers from OEM deals to higher ARPU services after initial free trials, with lower churn rates due to lack of economic pressure on customers [40] Question: What is the expected level of CapEx for 2025? - CapEx is expected to decrease in the coming quarters after a higher than average first quarter [30]

Core Insights - Ituran Location and Control Ltd. surpassed 2.5 million subscribers, achieving a net addition of 99,000 subscribers in the first quarter of 2025, and raised its 2025 net subscriber-add forecast to between 220,000 and 240,000 [1][3][6] Financial Performance - Revenues for the first quarter of 2025 were $86.5 million, a 2% increase from $85.0 million in the same quarter of 2024 [4][8] - Subscription fee revenues accounted for 72% of total revenues, amounting to $62.2 million, which is a 2% increase year-over-year [4][5] - Product revenues were $24.3 million, reflecting a 1% increase year-over-year [7][8] - Gross profit for the quarter was $42.0 million, representing 48.6% of revenues, a 6% increase compared to $39.5 million in Q1 2024 [7][9] - Operating income rose to $18.7 million, a 10% increase year-over-year [8][9] - Net income increased to $14.6 million, a 12% increase compared to $13.0 million in Q1 2024 [10][8] - EBITDA for the quarter was $23.3 million, up 4% from $22.3 million in the same quarter last year [10][8] Subscriber Growth - The subscriber base expanded to 2,508,000 by the end of March 2025, marking a quarterly increase of 99,000 [6][8] - The growth was significantly driven by a new telematics service agreement with Stellantis, the largest car manufacturer in Latin America [3][6] Dividend Declaration - The Board declared a quarterly dividend of $10 million, equivalent to $0.50 per share, reflecting the company's strong profitability and positive cash flow [8][12] Cash Flow and Balance Sheet - Cash flow from operations for the quarter was $15.5 million [11] - As of March 31, 2025, the company had net cash, including marketable securities, of $75.7 million, with no debt [11]