“We have started the year in line with our expectations. Our Consumer activities held up well in the first quarter, through a combination of a resilient PND market and growth in sports products. Our Automotive business contracted as anticipated and newly booked business continued at levels which will support a growing business. We saw continued strong growth in our Telematics recurring subscription revenue and Licensing delivered double-digit revenue growth in the quarter.”
Outlook 2015
Despite the currency headwinds caused by the weakening of the euro, we are re-iterating our guidance for the year. We expect revenue to grow to around €1 billion, we are maintaining the level of investment (both CAPEX and OPEX) in our core technologies at similar levels to last year and adjusted EPS1 is expected of around €0.20.
Financial and business review
We generated revenue of €205 million in the first quarter, flat compared to the same quarter last year (Q1 '14: €205 million). Our Telematics, Licensing and sport businesses grew strongly to broadly counterbalance the reduction in PND and Automotive revenue. We reported a gross margin of 54% in the first quarter (Q1 '14: 57%). The weakening of the euro caused the year on year decline of 3 percentage points. The net result for the quarter was a loss of €6.9 million, which translates to adjusted earnings per share of €0.01.
Consumer
| (€ in millions, unless stated otherwise) | Q1 '15 | Q1 '14 | y.o.y. change | ||||||
| Consumer products | 100.7 | 104.7 | -4% | ||||||
| Automotive hardware | 20.9 | 20.4 | 2% | ||||||
| Total Consumer revenue | 121.6 | 125.1 | -3% | ||||||
| Key PND market data | |||||||||
|
Europe 2 |
|||||||||
| Market size (# units sold in millions) | 1.4 | 1.6 | -8% | ||||||
| TomTom market share | 51% | 52% | |||||||
|
North America |
|||||||||
| Market size (# units sold in millions) | 0.7 | 0.8 | -17% | ||||||
| TomTom market share | 16% | 19% | |||||||
