TomTom’s Chief Executive Officer, Harold Goddijn
“We reported revenue growth in the second quarter and overall a solid set of results.
Our Consumer business continued to broaden its revenue base with new products in the sports category, and we continued our strong growth path in Telematics and passed the 500,000 subscriptions milestone.
Our Automotive revenue contracted as anticipated, however we continued to book new business at levels which will support a growing business from next year onwards; Licensing delivered double-digit revenue growth in the quarter.
We expect to have fully replaced our map-making system with a transaction-based platform that will enable near real-time maps, in the second half of 2015. With this technological innovation, TomTom is well positioned to address the need for accurate and up-to-date maps, for navigation applications and driver assistance applications, including Highly Automated Driving.”
Outlook 2015
We are re-iterating our guidance for revenue and adjusted EPS for the full year. We expect revenue to grow to around €1 billion, and adjusted EPS1 is expected of around €0.20. We now expect the level of investment (both CAPEX and OPEX) in our core technologies to be modestly higher than last year.
Financial and business review
We generated revenue of €265 million in the second quarter, 5% higher compared with the same quarter last year (Q2 '14: €252 million). Our growing Telematics, Licensing and sports businesses more than counterbalanced the reduction in PND and Automotive revenue.
We reported a gross margin of 51% in the second quarter (Q2 '14: 56%). The stronger dollar caused the year on year decline of 5 percentage points.
The net result for the quarter was a gain of €3 million, which translates to adjusted earnings per share of €0.05.
Consumer
| (€ in millions, unless stated otherwise) | Q2 '15 | Q2 '14 |
y.o.y.
|
H1 '15 | H1 '14 |
y.o.y.
|
|||||||||||||
| Consumer products | 147.8 | 149.1 | -1% | 248.6 | 253.8 | -2% | |||||||||||||
| Automotive hardware | 17.1 | 19.4 | -12% | 38.0 | 39.8 | -5% | |||||||||||||
| Total Consumer revenue | 164.9 | 168.5 | -2% | 286.6 | 293.6 | -2% | |||||||||||||
| Key PND market data | |||||||||||||||||||
|
Europe 2 |
|||||||||||||||||||
| Market size (# units sold in millions) | 1.7 | 1.8 | -7% | ||||||||||||||||
| TomTom market share | 52% | 52% | |||||||||||||||||
|
North America |
|||||||||||||||||||
| Market size (# units sold in millions) | 0.8 | 1.0 | -19% | ||||||||||||||||
| TomTom market share | 17% | 15% | |||||||||||||||||
|
Change percentages are based on non-rounded figures. |
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