TomTom’s Chief Executive Officer, Harold Goddijn
“Our new PND ranges became fully available in the European market and our first TomTom branded sports watches shipped in all of our major global markets. On the back of this we have started a communications campaign that will run well into the fourth quarter.
We continue to make inroads into the Automotive market although revenue is affected by ongoing low car sales.
We reported a solid set of results despite challenging market conditions and generated significant cash from operations.”
Business review
The PND market size in Europe was 2.3 million units in the third quarter, 15% lower compared to Q3 '12, in line with expectations and the trend seen in the first half of the year. Our Q3 '13 PND revenue in Europe was flat compared to the same quarter last year as the decline in the PND market was partially offset by an increase in our market share to more than 50% and by a strengthening of our ASP. We made the new generation of PNDs fully available across Europe.
The PND market in size in North America was 1.1 million units in the third quarter, 28% lower compared to Q3 ’12. We have chosen not to participate in highly discounted promotional activities and this resulted in a market share of 17% in the quarter.
After initial introduction earlier this year, Consumer started shipping our new GPS sports watches in the US in July, accompanied by a communication campaign launched in September. Following a wider geographical roll-out, our sports watches are now available in 21 countries globally.
In Automotive, we entered into a partnership with Ford, where future TomTom iOS and Android navigation applications will connect to Ford’s SYNC in-dash multimedia system. In September, we started shipping our navigation application into Sony’s second generation in-dash infotainment system and our real-time traffic information service was added to additional Daimler Mercedes-Benz lines. In addition, the Renault R-Link built-in infotainment system was ranked as the best infotainment system available in a study performed by SBD, an independent automotive research consultancy firm. The R-Link system received consistently high scores for its balance of simplicity and feature-richness.
In the third quarter, we made our speed camera service available for integration into third-party connected navigation solutions. This allows vehicle manufacturers and their suppliers to enhance their own navigation offerings.
Business Solutions acquired Coordina, the number one Fleet Management Service provider in Spain. Coordina has a broad local sales network and a well-established local service hub. More than two thirds of Business Solutions revenue is recurring subscription based revenue, generated by the installed base of 310,000 WEBFLEET-subscribers.
Financial review
Revenue
| (in € millions) | Q3 '13 | Q3 '12 |
y.o.y.
|
YTD '13 | YTD '12 |
y.o.y.
|
||||||||||||
| Group | 244 | 274 | -11% | 696 | 768 | -9% | ||||||||||||
| Consumer | 151 | 172 | -12% | 402 | 452 | -11% | ||||||||||||
| Automotive | 44 | 49 | -11% | 147 | 168 | -13% | ||||||||||||
| Licensing | 28 | 33 | -17% | 87 | 95 | -8% | ||||||||||||
| Business Solutions | 21 | 19 | 11% | 60 | 53 | 15% | ||||||||||||
| Hardware | 151 | 169 | -11% | 416 | 466 | -11% | ||||||||||||
| Content & Services | 93 | 105 | -11% | 280 | 302 | -7% |
