NAVTEQ: €1 Billion Sales in 2010

NAVTEQ CEO Larry Kaplan
NAVTEQ CEO Larry Kaplan
Selling the picks and shovels of the navigation and LBS gold rush is definitely a good business as it can be noticed today with the financial results of Nokia-owned digital map provider NAVTEQ. Indeed, The Chicago-Headquartered company made €1.003 billion in revenue in 2010, up from €670 million last year.

During the fourth quarter 2010 NAVTEQ reported net sales increased 37% year-on-year to EUR 309 million, compared with EUR 225 million in the fourth quarter 2009, and increased 23% compared to EUR 252 million in the third quarter 2010.

For the fourth quarter 2010 NAVTEQ’s non-IFRS operating profit was EUR 100 million, compared with EUR 54 million in the fourth quarter 2009 and EUR 74 million in the third quarter 2010. The non-IFRS operating margin was 32.4% in the fourth quarter 2010, compared with 24.0% in the fourth quarter 2009 and 29.4% in the third quarter 2010. The year-on-year and sequential increase in NAVTEQ’s non-IFRS operating margin was primarily due to higher net sales, offset to some extent by higher operating expenses.

For the whole year 2010 Europe accounted for 43% (46% in 2009) of NAVTEQ’s net sales, North America 33% (44% in 2009), Middle East & Africa 6% (4% in 2009), Asia-Pacific 7% (3% in 2009), Latin America 2% (2% in 2009) and Greater China 9% (1% in 2009). Growth is definitely coming from fast developing countries where the navigation business is just getting started.

Nokia explained that “the year-on-year increase in net sales was primarily driven by growth in mobile device sales, particularly Nokia mobile devices, improved sales of map licenses to mobile device customers, as well as improved conditions and higher navigation uptake rates in the automotive industry.”

Thursday, January 27th 2011

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