In an interview last week in the Journal de l’Automobile, StÃ©phane Schriqui, Commercial Director for France is providing some insights about the telematics business of TomTom. Adding this with the recent financial results of the Dutch company, it offers a detailed picture of this telematics business.
TomTom Telematics is essentially a European business with 90 percent of its fleet on the continent.
The forecast for 2016 is to add 180,000 vehicles tracked and finally to reach 1 million in the 2017-2018 timeframe.
Obviously external growth is part of TomTom Telematics DNA, the company is on the lookout to acquire additional small players (managing 50,000 vehicles on average) across Europe as it did in the last few years.
The EBIT margin of the telematics business was 29% in fiscal year 2015, slightly down from 31% in 2014. In 2015 the monthly subscription ARPU was â‚¬15.9 down 2 percent from â‚¬16.2 in 2014.
With 60,000 vehicles the French market represents around 10 percent of the total TomTom’s Telematics business. The goal is to grow it with 18,000 additional devices in 2016.
To learn more, read (in French) the interview in the Journal de l’Automobile.