Tele Atlas: good second quarter



Tele Atlas: good second quarter
Tele Atlas announced today its revenues for the second quarter of 2007 which increased by 21% to €72.8 million compared to €60.0 million in the same period last year. Revenues grew 24% after adjusting for a €1.3 million effect of currency exchange rate changes. Tele Atlas’ consolidated after tax net loss during the second quarter of 2007 was €1.2 million, compared with a net profit of €4.5 million for the same period in 2006 (Q2 2006 included a tax benefit of €10.7 million).

EMEA (Europe, Middle East & Africa) revenues for the quarter increased by 21% over the prior year to €53.1 million, mainly as a result of growth in the personal navigation segment. Americas revenues for the second quarter increased 12% from the prior year to €16.7 million, primarily due to increases in the personal navigation and Internet segments. Americas revenues grew 21% after adjusting for the effect of currency exchange rates changes. Revenues for the quarter in the Asia Pacific (APAC) area increased by 158% over the prior year to €2.9 million.


Personal Navigation segment
During the second quarter of 2007, worldwide revenues in the personal navigation segment increased by 52% over the same period in the prior year to €38.9 million. Personal navigation now amounts for 54% of Tele Atlas revenues. These revenues represent map license fees from the sale of 3.0 million personal navigation units as compared to 1.5 million units in the same quarter of the previous year. EMEA personal navigation revenues for the quarter were €32.9 million, an increase of 43% over the same period last year. Americas personal navigation revenues were €6.0 million, an increase of 136% over the same period last year (153% increase excluding exchange rate effect).

The average selling price for map unit in this category dropped by 26% compared to the second quarter of 2006. Tele Atlas explained:”it resulted from a movement towards lower cost personal navigation systems in the quarter coupled with product price reductions that were effective during the quarter”.

During this quarter TomTom represented 28% of the revenues and Mio/Navman (together under parent company Mitac) 12%.

Wireless and internet segment
Internet and consumer wireless markets revenues increased by 81% to €5.4 million compared to €3.0 million during the same period last year. Nokia in Europe and RIM in the US started to contribute to performance in this area, said Tele Atlas CFO Hardie Morgan.

Talking about the cash offer made by TomTom last week, Tele Atlas said: “it is currently difficult to assess the impact, if any, the announcement and ongoing progress of the proposed transaction may have on our results for 2007 and beyond.”

Tuesday, July 31st 2007

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