TomTom Revenue Down 17% in 2012, Outlook for 2013 is Challenging

TomTom Revenue Down 17% in 2012, Outlook for 2013 is Challenging
TomTom today posted their financial earnings for the fourth quarter and full year 2012 that show a quarterly revenue decline of 19% (to €289 million) and an annual decline of 17% (to €1,057).

Consumer business
During the fourth quarter 2012 TomTom consumer revenue declined 23 percent to €183 million. “The year-on-year decrease is mainly the result of PND (Personal Navigation Device) demand continuing to be less skewed towards the fourth quarter.“

TomTom indicated that the PND market size in Europe was 2.5 million units compared to 3.2 million units in the same quarter of last year. TomTom’s European market share increased from 47% in Q4 2011 to 50% in Q4 2012.

The North American market size was 2.5 million units compared to 3.7 million units last year. TomTom market share in North America declined to 19 percent compared to 27 percent in the prior year.

For 2013 TomTom expects the PND market “to decline by 15–20% in volume year over year.“

TomTom also added that the sale of their sport watch developed jointly with Nike is doing well: “we saw revenue from the SportWatch nearly double year on year albeit from a small base.“

TomTom’s automotive revenue declined 21 percent to €44 million. “The year on year decline reflects the tough conditions in the European automotive industry which continue to constrain new car sales,“ wrote TomTom.

With automotive clients such as Renault and Fiat, TomTom is facing the consequences of the difficult situation of these car manufacturers hurt by the weak European demand for their cars.

Licensing generated revenue of €37 million in this quarter, a decline of 7% compared to the €40 million in Q4 2011, “mainly due to lower revenue coming from third party PND vendors. “

Sequentially, revenue increased by €4 million or 12 percent (Q3 2012: €33 million), “as a result of higher revenue from smartphone and internet customers.“

Business Solutions
Business Solutions is the only business unit in growth with €20 million revenue in the quarter, up 8 percent year on year (Q4 2011: €19 million) and up 6 percent sequentially (Q3 2012: €19 million).

The WEBFLEET subscriber base in the quarter grew by 33% year on year to 239,000 (Q4 2011: 180,000). The customer base passed the 19,000 mark, what TomTom believes to be “the largest in the fleet management services industry.“

“Our partnership with Tracker is developing well and sales in South Africa grew markedly,“ added TomTom.


Tuesday, February 12th 2013

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