GPS maker TomTom announced today â‚¬217.2 million in revenue in the first quarter of 2016, up 6 percent.
The net result for the quarter was â‚¬4.8 million, which translates to adjusted earnings per shareof â‚¬0.03.
TomTom maintained their full year financial outlook with revenue expected of around â‚¬1,050 million and adjusted EPS of around â‚¬0.23.
In his statement TomTom’s CEO Harold Goddijn expressed the interest of the company in the aftermarket connected car segment:
“We are also developing new products for the Connected Car services industry, which take advantage of the capabilities of our Telematics technology. This allows us to target new business and consumer markets, including OEMs, dealerships, importers, servicing and leasing companies and the usage-based insurance (UBI) sector."
Total Consumer revenue for the quarter was â‚¬117 million, compared with â‚¬122 million in the same quarter last year (down 4 percent). The Automotive hardware revenue (part of the consumer division) decreased by 6% year on year to â‚¬20 million in the quarter (Q1 2015: â‚¬21 million).
Total Consumer products revenue amounted to â‚¬97 million in the quarter, compared with â‚¬101 million in the same quarter last year.
“The year on year decrease was driven by lower PND and related content & services revenue partly offset by a considerable growth in Sport revenue,“ the company stated.
“Consumer Sport saw the sell-out nearly doubling year on year“ added TomTom’s CEO Harold Goddijn in its conference call with financial analysts.
The PND market was estimated by TomTom at 1.1 million pieces in Europe (where TomTom owned 52% market share, up 1% against last year) and 500,000 units in North America (TomTom had 17% market share, growing 1% against Q1 2015).
Automotive business up 26%
Automotive business generated revenue of â‚¬30 million in the quarter, an increase of 26% year on year. This growth is “ reflecting growth in maps and traffic revenue underpinned by recently announced contracts,“ TomTom stated
Licensing revenue increased 16%
TomTom’s Licensing revenue was â‚¬34 million in the quarter, 16% higher compared with the same quarter last year (Q1 2015: â‚¬29 million).
“The year on year increase reflects growth in our Consumer Licensing and Geospatial segments driven by new customer wins as well as by renewing/extending existing customer contracts starting from Q2 2015,“ TomTom indicated.