TomTom reports 17 percent year-on-year decline in revenues to € 1,057 million.
TomTom’s total revenue for the fourth quarter 2012 was € 289 million, which is 19 percent lower compared to the same quarter last year. The year-on-year decrease is mainly driven by lower Consumer and Automotive sales. Consumer revenue for Q4-2012 decreased 23 percent year-on-year from € 242 million in Q4-2011 to € 187 million in Q4-2012. The year-on-year decrease is mainly the result of PND demand continuing to be less skewed towards the fourth quarter. PND sales in EMEA were relatively strong. Moreover, TomTom saw revenue from the SportWatch nearly double year-on-year albeit from a small base.
Automotive revenue for Q4-2012 fell 21 percent year-on-year to € 44 million, reflecting the tough conditions in the European automotive industry which continue to constrain new car sales. Licensing generated revenue of € 37 million in Q4-2012, a decline of 7 percent compared to the € 40 million in Q4-2011, mainly due to lower revenue coming from third party PND vendors. Revenue for Business Solutions was € 20 million in Q4-2012, representing an 8 percent increase year-on-year.
Full year revenues declined 17 percent year-on-year to € 1,057 million, while gross margin increased 2 percentage points to 52 percent. Consumer revenue accounted for 60 percent of total revenues, Automotive revenues 20 percent, Licensing 13 percent and Business Solutions 7 percent of total revenues in 2012.
Founded in 1991, TomTom is a leading provider of navigation and location-based products and services. TomTom maps, traffic information and navigation technology power automotive in-dash systems, mobile devices, web based applications and government and business solutions. TomTom also designs and manufactures its own location-based products including portable navigation devices and fleet management solutions, as well as GPS-enabled sports watches. Headquartered in Amsterdam, TomTom has 3,500 employees worldwide and sells its products in over 40 countries.
Ten latest articles from Navigation