TomTom Grew Revenue in 2015, First Time in 5 Years

Total revenue reached €1,007M



TomTom Grew Revenue in 2015, First Time in 5 Years
GPS maker TomTom today announced for the last quarter of 2015 a revenue of €282 million, up 9 percent, while the EBIT margin was 0%, down from 1 percent in the last quarter of 2014.

For the whole year the revenue has increased 6% at 1,007 million.

“We delivered top-line growth in 2015, for the first time in five years. The weakening of the euro in combination with higher investments in our core technologies affected our profitability negatively in 2015. As a result, our EBIT for the year was at break-even. The net result for 2015 was €18 million, which translates to adjusted earnings per share of €0.21,” commented TomTom's Chief Executive Officer, Harold Goddijn.

Consumer business

Total Consumer revenue for the quarter was €176 million, an increase of 2% compared with €172 million in Q4 2014.

Total Consumer products revenue amounted to €157 million in the quarter, €1 million higher than in the same quarter last year (Q4 '14: €156 million). The Automotive hardware revenue increased by 17% year on year to €19 million in the quarter (Q4 '14: €16 million). This year on year increase was mainly due to changes in the product mix.

On a full year basis, Consumer products revenue increased by 1% and amounted to €551 million (FY 2014: €548 million). The year on year growth was mainly driven by a strong growth in the Sports category, partially offset by modestly lower PND revenue.

TomTom reported that for the whole year 2015 the PND market size was 3.2 million in North America (down 22% from 4 million in 2014) and 6.8 million in Europe (EMEA17), down 8 percent from 7.4 million.

IN 2015 TomTom had 17% market share in North America (up from 15% in 2014) and 52% in Europe (same as 2014).

“Our PND business developed better than the market in 2015. We maintained our leading market position in Europe, improved our market share in North America and we strengthened our average selling price (ASP), which resulted in value share growth and a modest decline of our PND revenue in 2015,“ wrote TomTom in their statement.

Sports revenue amounted to €69 million in 2015, an increase of 40% compared with 2014: €50 million. The company shipped over 600,000 GPS sport watches in 2015.

Automotive business
The Automotive revenue for the quarter was €30 million, a 28% increase year on year, “mainly reflecting increase in maps and traffic revenue of recently announced contracts,“ the company explained.

On a full year basis, Automotive revenue was €106 million compared with €109 million in the previous year.

Continued...

Tuesday, February 9th 2016


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