HERE (NAVTEQ) Sales of Auto Map Licenses Up 33% in 4Q 2013

Nokia announced today their financial results for the fourth quarter and the full year 2013, offering some visibility into its HERE division, formerly known as NAVTEQ.

Automotive map licenses sales have gone up 33% the fourth quarter 2013, with sales of new vehicle licenses of 3.2 million units, compared to 2.4 million units in the fourth quarter 2012 and 2.6 million units in the third quarter 2013.

On a year-on-year basis, unit sales to vehicle customers increased primarily due to higher vehicle sales and higher consumer uptake of in-vehicle navigation.

Sales to vehicle customers represented well over 50% of external HERE net sales in the fourth quarter 2013, as well as in the fourth quarter 2012 and the third quarter 2013.

Unfortunately for HERE, that automotive success was “partially offset by lower sales to personal navigation device (PND) customers,“ so external sales went up but only 10 percent, from €204 million in the fourth quarter of 2012 to €225 in the fourth quarter of 2013.

However HERE total sales have decreased from €278 million to €254 million (10 percent down). The reason for that is the fast decline of internal sales (i.e. navigation and maps found in Nokia devices): €74 million end of 2012 to €29 million end of 2013.

The good news for the longer term is that internal sales can not go much further down while automotive license sales are likely to continue to grow at a good pace.

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