This report includes the following non-GAAP measures: gross margin, EBIT (margin), EBITDA (margin), adjusted net result, adjusted EPS and net cash, which are further explained on page 12 of this report.
1 Earnings per fully diluted share count adjusted for
acquisition-related expenses & gains on a post-tax basis.
2
In 2016, CAPEX was €118 million and OPEX was €557 million.
TomTom's Chief Executive Officer, Harold Goddijn
“We reported revenue of €987 million in 2016, which is slightly below last year. We are increasing high margin recurring data, software & services business, which now reflects nearly 50% of our revenue mix and more than 70% of our gross result mix. Gross result grew strongly this year with 9%.
Our Automotive products and roadmap continue to be well received, resulting in order intake for 2016 of over €300 million. Order intakes from previous years are now starting to deliver a strong revenue growth in Automotive. We are working with many automotive OEMs and Tier1s to integrate our HD Maps into the self-driving systems they are developing. In early 2017, we acquired Autonomos, a Berlin-based start-up that will give us greater insights and capabilities into the Autonomous Driving software stack.
Telematics reached a subscriber base of nearly 700,000 subscriptions, representing the largest European fleet management business.”
Outlook 2017
In 2017, we expect full year revenue of between €925 million and €950 million. Adjusted EPS1 is expected of around €0.25.
We expect the combined revenue of the Automotive, Licensing and Telematics businesses to grow above 10% year on year in 2017, in line with our previous expectations of their combined revenue CAGR of 15% between 2016 and 2020.
In Consumer, we expect the PND revenue to continue to decline; this will be only partially offset by a growing Sports business.
We expect the level of investments (both CAPEX and OPEX) to show a modest increase compared with 20162, excluding acquisitions. In particular, we are investing in advanced content and software for the automotive industry and in our mapmaking activities.
Financial and business review
We generated revenue of €266 million in the fourth quarter, a decrease of 6% compared with €282 million in Q4 '15. On a full year basis, our revenue was €987 million (FY '15: €1,007 million). Automotive, Telematics and Consumer Sports grew strongly, partially offsetting the reduction in Consumer Drive revenue; Consumer Drive remained the biggest revenue contributor for the group. Licensing business showed a modest decline year on year.
We reported a gross margin of 57% in FY '16 (FY '15: 52%). Operating profit (EBIT) for the year amounted to €9 million (FY '15: €1 million). The net result for the year was €12 million, which translates to adjusted EPS1 of €0.23 in FY '16 (FY '15: €0.21).
1 Earnings per fully diluted share count adjusted for
acquisition-related expenses & gains on a post-tax basis.
2
In 2016, CAPEX was €118 million and OPEX was €557 million.
Automotive & Licensing
| (€ in millions, unless stated otherwise) | Q4 '16 | Q4 '15 | y.o.y. change | FY '16 | FY '15 | y.o.y. change | ||||||||||
| Automotive revenue | 36.7 | 30.3 | 21 | % | 132.6 | 105.9 | 25 | % | ||||||||
| Licensing revenue | 35.0 | 39.3 | -11 | % | 136.3 | 142.1 | -4 | % | ||||||||
| Total Automotive & Licensing revenue | 71.7 | 69.6 | 3 | % | 269.0 | 248.0 | 8 | % | ||||||||
| Automotive & Licensing segment EBITDA | 82.1 | 68.4 | 20 | % | ||||||||||||
| EBITDA margin (%) | 31 | % | 28 | % | ||||||||||||
| Automotive & Licensing segment EBIT | -25.5 | -33.9 | ||||||||||||||
| EBIT margin (%) | -9 | % | -14 | % | ||||||||||||
