TomTom announces preliminary third quarter 2016 results
Amsterdam, 13 October 2016 – TomTom (TOM2) today announced preliminary financial information for Q3 2016, which ended 30 September 2016, and updated full year 2016 outlook.
Consumer PND markets have been weak over recent periods.
The European PND market is experiencing a faster rate of unit decline compared with what we have seen in the first half of the year and we now expect this market in units to be down by about -20% for the year as a whole. The rate of unit decline of the North American PND market is broadly in line with what we have seen in the first half of the year and for the year as a whole is expected to be around -23%.
The Automotive, Licensing, and Telematics businesses are developing in line with expectations.
Hardware revenues are lower than planned because of weak PND sales; content and service revenues reported growth, which resulted in a strong gross margin.
Full Q3 2016 results will be published on 21 October 2016.
Outlook 2016 updated
As a result of these developments, we now expect full year group revenue of around €980 million, down from previous guidance of around €1,050 million. Outlook for adjusted EPS1 of around €0.23 is unchanged.
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1 Earnings per fully diluted share count adjusted for acquisition-related amortisation & gain on a post-tax basis.
TomTom (TOM2) empowers movement. Every day millions of people around the world depend on TomTom to make smarter decisions. We design and develop innovative products that make it easy for people to keep moving towards their goals. Our map-based components include map content, online map-based services, real-time traffic, and navigation software. Our consumer products include PNDs, navigation apps, sports watches and action camera. Our main business products are custom in-dash navigation systems and a fleet management system, which is offered to fleet owners as an online service with integrated in-vehicle cellular devices. Our business consists of four customer facing business units: Consumer, Automotive, Licensing and Telematics. Founded in 1991 and headquartered in Amsterdam, we have more than 4,600 employees worldwide. For further information, please visit www.tomtom.com.
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