TomTom improved market share in Fourth quarter 2007

TomTom improved market share in Fourth quarter 2007
Tomtom today released its financial results for the last quarter and the full year 2007. The company reported a revenue of €634 million, up 33% year-on-year. It is slightly less than its main competitor Garmin that reported $999 million for its auto/mobile division during the same quarter.

For the full year TomTom’s revenue is €1,737 million, up 27% year-on-year. The PND volume was 9.6 million, up 104% year-on-year. The gross margin was 44% and operating margin 25%. Cash flow from operations was €535 million.

During the fourth quarter TomTom maintained its market share at 49% in Europe and increased its U.S. presence to 27% market share, (25% for the whole year, up from 15% in 2006).

In comparison to the fourth quarter of 2006 TomTom has tripled the share of North America in its total revenue (7 to 21%) and doubled the size of the “rest of the world” from three to six percent.

TomTom expects the PND market to continue to grow strongly in 2008. In Europe TomTom expects the market to grow by 40% from 15 million units to 21 million units and in the US by 80% from 9.5 million units to 17 million units.

TomTom forecasts sales between 14 million and 15 million units in 2008. “Our full year revenue guidance is between €2.0 billion and €2.2 billion and for gross and operating margins of around 40% and 20% respectively,” said the company.

Thursday, February 21st 2008

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