TomTom’s Chief Executive Officer, Harold Goddijn

“We delivered a solid set of results this quarter. Consumer revenue was in line with our expectations and we saw strong growth from our other business units.

The nature of our industry is changing and we will adapt our organisation accordingly. We have started a restructuring programme which will focus our organisation on the areas where we see the greatest potential for growth, of which Automotive and Content & Services are clear examples.

The programme, which was initiated in the third quarter, includes a headcount reduction which will only be partially achieved through attrition. The reduction of the workforce is a regrettable but necessary step to adapt the company to the changed conditions in the markets we operate in.

We will continue to invest in the quality of our global map database, in our navigation technologies and our leading traffic service. This will enable us to grow our position in the expanding markets of location and navigation and to continue our transition into a broader based company.”

Outlook and restructuring

We expect full year revenue towards the upper end of our guidance of between €1,225 million and €1,275 million.

We expect to deliver earnings per share at the upper end of our guidance of between €0.25 and €0.30, excluding impairment and restructuring charges.

We have reduced our operating expenses this year. We expect full year operating expenses to be around €540 million, excluding impairment and restructuring charges. We expect full year capital expenditure to be around €80 million. In 2012 we expect additional savings of around €50 million.

Further details about the restructuring programme will be provided towards the end of the current quarter.

Operational review