TomTom Reports Second Quarter 2015 Results

2 Europe refers to EMEA17: AT, CH, DE, BE, NL, FR, IT, GB, ES, PT, TR, CZ, PL, DK, SE, FI and ZA.

Total Consumer revenue for the quarter was €165 million, a decline of 2% compared with the same quarter last year (Q2 '14: €169 million). Consumer products revenue in Q2 '15 was roughly flat year on year. This was driven by a single digit decline of PND and related content & services revenue, offset by a mid double-digit increase of sports revenue. The Automotive hardware revenue decline was due to the phasing out of our automotive hardware contracts.

In Q2 '15, we saw a unit decline of 7% in the European PND market, whilst the North American market declined by 19%. Our market share in both Europe and North America was flat. We strengthened our ASP, as our product mix in the quarter was skewed towards more expensive models.

In the quarter, we launched the TomTom Bandit action camera, which makes editing and sharing videos quick and easy. The TomTom Bandit is the first with a built-in media server, which eliminates the need to download footage before being able to edit it. The camera works with a companion app, making it possible to create and share videos in a matter of minutes. The TomTom Bandit started to ship in May.

We continued to broaden our offering in the PND category with the introduction of new GO PND devices with lifetime world maps and lifetime speed cameras. We also launched TomTom MyDrive, a portal and app designed to seamlessly connect our best-in-class traffic-dependent routing service to PNDs. With TomTom MyDrive, drivers can use their smartphone, tablet or PC to review real-time traffic information, plan routes and send destinations to their TomTom GO, before they get in the car.

We also further expanded our Consumer product offering to the B2B market with the introduction of the TRUCKER 6000. TRUCKER 6000 is specifically designed for drivers of large vehicles and includes information such as customised routes for the user’s specific vehicle type, size, weight, cargo and speed.

Automotive

Our Automotive business generated revenue of €26 million in the quarter, compared with €31 million in Q2 '14. This decline is mainly due to the phasing out of hardware-based contracts.

In the quarter, we extended our longstanding partnership with Fiat to deliver our maps, LIVE services and connected navigation in the Uconnect™ infotainment systems in the new Fiat 500. We also announced a partnership with Luxoft to integrate our TomTom NavKit engine as a navigation solution in its Award-winning AllView automotive infotainment solution.

We expect to have fully replaced our map-making system with the transaction-based platform this year. Our new map-making platform is updated continuously using transactions with automatic quality checks. An update is available to customer applications as soon as the transaction has completed. This helps us to dramatically reduce the time between change detection and publishing a new map, which we can also do incrementally to deliver “real-time maps”. Some customer applications such as automated driving place a high premium on being up-to-date with the latest real-world changes.

We also released HAD map content in the metro Detroit area. OEMs and Tier 1’s can use our HAD maps for precise vehicle positioning which enables future self-driving cars to see beyond their sensors.

Licensing

Our Licensing revenue was €39 million in Q2 '15, 42% higher compared with the same quarter last year (Q2 '14: €27 million). The year on year increase of €12 million included a €5 million catch-up of content delivered in the first quarter.

In the quarter, we announced that our global agreement for maps and related information with Apple was renewed and extended. We also announced a partnership with Mozilla and Telefónica to bring our Maps Online and Nav Online apps to HTML5 powered Firefox OS smartphone devices.

Telematics

                                     
(€ in millions, unless stated otherwise)     Q2 '15     Q2 '14    

y.o.y.
change

    H1 '15     H1 '14    

y.o.y.
change

                                     
Hardware and other services revenue 1     11.0     7.7     43%     19.5     15.7     24%
Subscription revenue     24.1     18.0     34%     46.7     35.1     33%
Total Telematics revenue     35.1     25.6     37%     66.1     50.7     30%
                                     
Monthly subscription ARPU (€) 16.2 16.2 0%
Subscriber installed base (# in thousands)     507     395     28%                  

Change percentages are based on non-rounded figures.


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