Strong U.S. growth
EMEA (Europe, Middle East and Africa) revenues for the quarter increased by 8% over the prior year to €53.1 million, mainly as a result of growth in the personal navigation and consumer wireless segments. Americas revenues for the third quarter increased 25% from the prior year to €18.5 million, primarily due to increases in the personal navigation segment. Americas revenues grew 33% after adjusting for the effect of currency exchange rates changes. Asia Pacific (APAC) revenues for the quarter increased by 181% over the prior year to €2.7 million.
Personal navigation revenues increased 17% over the same quarter in 2006, while the number of units shipped with Tele Atlas maps increased 60% to 3.2 million (and an additional 161,000 aftermarket maps). Nevertheless “some of our customers had availability issues”, said Tele Atlas CFO Hardie Morgan.
The average selling price was down 28% from last year. Two third of this decreased was explained by price decline and the remaining part explained by the shift to lower end systems in the product mix at Tele Atlas clients (increase in the sales of PND with country maps instead of regional maps).
The wireless and internet sales segment increased by 130% to €6.4 million compared to €2.8 million during the same period last year as a result of strong growth in the consumer wireless segment in the EMEA region; this is mainly related to the Nokia business (Nokia N95 with Nokia maps) which accounted for “€1 million to €1.5 million”, said Hardie Morgan.
Tele Atlas has not modified its outlook for the whole year that remains at €315 million in revenues, Adjusted EBITDA of approximately €65 million and operating profit (EBIT) of approximately €3 million. For the next several years Tele Atlas expects to grow revenues in excess of 20% on an annual basis and that Adjusted EBITDA for each year will increase by approximately 50% of incremental revenue. “However, it is currently difficult to assess the impact, if any, the announcement and ongoing progress of the proposed TomTom transaction will have on our results for 2008 and beyond” said Tele Atlas.