The company announced ajusted earnings per share of €0.14 compared to €0.18 in the previous year. Net cash flow from operating activities was €50 million (€70 million in the prior year) while the net debt reduced to €153 million compared to €194 million at the start of the year.
“The PND market developments have become more predictable,“ said TomTom’s CEO, Harold Goddijn. “year over year decline of our core markets combined has been in line with previously communicated expectations and sales prices are stabilising. The European economic situation is having a significant impact on the automotive industry. We expect our Automotive revenue to remain under pressure in the coming quarters.“
“As a result we lower our group revenue guidance for the year from around €1.10 billion to around €1.05 billion. We continue to deliver a strong gross margin and the reduction of our cost base is ahead of schedule. We therefore maintain our adjusted EPS guidance for the year of around €0.35.”
TomTom’s Consumer revenue (including PND, Apps and accessories) over the past quarter amounted to €172 million, which is a €53 million decrease year on year (Q3 2011: €225 million).
“The year on year decrease was driven by lower PND sales reflecting the decline of the size of the PND markets in our core geographies,“ said Tomtom.
According to the Dutch GPS maker, the market size in Europe for PNDs was 2.6 million units compared to 3.0 million units in the same quarter of last year. The North American market size was 1.5 million units compared to 1.9 million units last year, a combined decline of 17%.
TomTom estimated their market share in Europe increased sequentially by 1 percentage point to 46%. In North America it increased sequentially from 19% to 22%.
TomTom’s automotive revenue declined by 16% year on year to €49 million (Q3 2011: €59 million). The decline was said to be mainly driven by lower hardware sales as the automotive industry was significantly impacted by the European economic situation. Sequentially revenue declined by 17% (Q2 2012: €60 million).