The shortfall in revenue and margin is due to the difficult PND market, explained TomTom. “In the fourth quarter we saw the size of the PND market fall short of our previously announced expectations of 18 million units for both the European and North American markets for the full year 2008. We now expect the European and North American markets for the full year 2008 to be approximately 17 million units in size each. Our fourth quarter market shares in both markets continued to be strong at 46% and 24%, respectively. We expect to report sell-in volume for the full year 2008 at the lower end of the previously provided range of 12 to 13 million units”.
TomTom also gave an update about its debt position: “Due to strong cash flow management in the quarter the Group ended the year with net debt of €1.11 billion, down from €1.32 billion at the end of third quarter in 2008”.
The Dutch company will report the full fourth quarter and 2008 results on 24 February 2009.