2nd QTR Financial results

[gatorguy]

Tomtom posted their latest finanacial results this morning. As expected, gross revenue taking a hit, down 13% YOY to EUR313 million. Consumer sales are novediving, down YOY by 23%, now just EUR209M.

One of the bright spots is sales to automotive OEM's up 34%, but not nearly enough in gross receipts, EUR60 million, to replace revenue from pnd sales.

One of the figures I found surprising was the number of LIVE subscribers worldwide. I had assumed minimum 2 million plus by now. Instead TomTom states there are just 1.1 million active. With TT's stated goal by the end of 2009 being 1 million live devices in play, having just 1.1M active subscribers now seems surprising. And that's tripled from last year!

The overall rundown can be seen here:
TomTom reports second quarter 2011 results - MarketWatch

 

[dhn]

This line:

Cash generated from operations:
-23,096(Q2, 11) 81,920(Q2,10) -17,595(Y11) 59,178(Y10)

Coupled with this:
"Based on the outlook for the PND market, we will reduce our cost base in the coming quarters to maintain a healthy cash flow, whilst at the same time continuing to invest to support our growing revenue lines."

I think I'd be preparing my resume if I worked for TomTom.

 

[mikealder]

They need to take stock of what they are currently doing:

Zonal maps which degrade the capability of pan European devices unless you have the all important memory card slot (not all models do).

HD Traffic with its effective range chopped by less than half what it used to be. (Certainly UK, making the RDS-TMC traffic offer better look ahead capability)

A new range of models that are less featured than previous offerings, some essential functionality is still missing almost twelve months since release.

Live service availability issues, sometimes for days on end with TomTom customer support oblivious to any fault.

Considering the above points is it any wonder that users are looking alsewhere for their next device?? - Mike

 

[canderson]

It's a tough world out here. Same story on PND vs. OEM sales. Find at the following link a transcript of Garmin's latest conference call: Garmin Management Discusses Q2 2011 Results - Earnings Call Transcript - Seeking Alpha

Net:

Garmin's second quarter results included 11% revenue growth in our traditional segments of aviation, marine, outdoor and fitness. Total revenue was down 8%, driven by lower volumes and increased deferred revenue in the auto/PND market.

and specific to automotive:

Finally, in our auto/mobile segment, revenue declined 19% as strong growth in OEM revenues was offset by the declining size of the PND market.

So the displacement of PND by integrated automotive units isn't happening fast enough to hold revenue steady there. No surprise. The automotive manufacturers are still looking to cheaper solutions from China and Korea with their poor user interfaces and infrequent and expensive map updates.