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TomTom Profits Fall Share Price Nosedives


Article by: Darren Griffin
Date: 29 Jun 2011

pocketgpsworld.com
TomTom's share price fell sharply yesterday following a profits warning published by the Dutch satnav manufacturer on Monday. The share price fell nearly 25%, a loss of more than €300m in the company valuation to €794m.

The profits warning follows continued weakness in the consumer electronics market and a decline in the European and US PND markets. The US market in particular has seen a dramatic decline with a forecasted fall of 30%. European sales are expected to fall by 10% fall in the same period

With consumers increasingly opting to use smartphone based solutions and consumers choosing budget models, TomTom has been concentrating on building its business in the factory-fit in-dash market as well as commercial tracking and Live subscription services. Although they have enjoyed some success in these areas, deals with Renault and Toyota for example it remains to be seen if any of these can restore the company to financial health.

TomTom now expect their full year revenue to be between €1,250m and €1,275m. Revenue for Q2 is expected to be between €300m and €310m, some €200m below the expected level.


Comments
Posted by rf065 on Wed Jun 29, 2011 11:18 am Reply with quote

I've been waiting to buy the Go 1005, but have held off up to now as I want to use the pocketgps speed camera warnings and voice alerts, bulk loaded not one at a time. It would seem the Mapshare option now works, but how many people have delayed purchasing TomToms top of the range SatNav due to silly omissions. Profits are down and my money is still firmly in my pocket.

Russ


 
Posted by Andy_P on Wed Jun 29, 2011 2:10 pm Reply with quote

rf065 Wrote:
I've been waiting to buy the Go 1005, but have held off up to now as I want to use the pocketgps speed camera warnings and voice alerts, bulk loaded not one at a time.


You can now do that (in the UKand Europe anyway...), if that's all that was stopping you buying.

Just think... your purchase may save the company! Laughing


"Settling in nicely" ;-)

 
Posted by rf065 on Wed Jun 29, 2011 2:52 pm Reply with quote

Are you sure? Last I heard the pocketgps cameras had to be copied one at a time and the spoken voice alerts for the camera warnings could not be loaded at all.

While my purchase is unlikely to save the company, there must be many like me refusing to buy a product that does less than the one it will replace.

Russ


 
Posted by tomtom_shareholder on Wed Jun 29, 2011 2:57 pm Reply with quote

I believe there is more to this.

TomTom says it's revenue will decrease from 1,5 to 1,2 billion. This is a 20% decrease.

But almost half of tomtoms revenue is not from PND's but from businesses that are not in decline, like licensing maps, business solutions, services. Those businesses are growing.

So, taken that in account, a decrease of 20% revenue overall, would mean a decline in PND by almost a half. Though I am very much aware of alternatives, such as smartphones, I doubt the fact that PND sales would be cut by almost a half only because of market conditions. There is still a market for dedicated devices.

I therefore assume that TomTom itself is planning to cut hardware. They are shifting more to content, services and software, and possibly they will significantly reduce the number of devices.


 
Posted by MaFt on Wed Jun 29, 2011 4:21 pm Reply with quote

rf065 Wrote:
Are you sure? Last I heard the pocketgps cameras had to be copied one at a time and the spoken voice alerts for the camera warnings could not be loaded at all.

Yes. Bulk uploading and ogg file support all working. But to delete is one at a time though.

MaFt


MaFt®

 
Posted by rf065 on Wed Jun 29, 2011 4:25 pm Reply with quote

Thanks, I may do my bit to save the company before heading through France & Spain in September!

Russ


 
Posted by Andy_P on Wed Jun 29, 2011 4:59 pm Reply with quote

As well as now being able to transfer stuff all at once in MyTomTom, there is also the completely seperate "Content Transfer Assistant" utility which AUTOMATICALLY copies POIs, Voices, Car icons, etc. from an old model to a new one.

You can download it from the TT website HERE.

Most surprising thing is... it seems to work! Laughing

(but unfortunately for our transatlantic cousins, it doesn't seem to be available in the US yet).


"Settling in nicely" ;-)

 
Posted by DeLorean on Thu Jun 30, 2011 8:16 pm Reply with quote

rf065 Wrote:
I've been waiting to buy the Go 1005, but have held off up to now as I want to use the pocketgps speed camera warnings and voice alerts, bulk loaded not one at a time. It would seem the Mapshare option now works, but how many people have delayed purchasing TomToms top of the range SatNav due to silly omissions. Profits are down and my money is still firmly in my pocket.

Russ


Yep!

I've held on to my trusty old 910 Smile

It's got the best text to speech engine I've heard on a Sat Nav to date.

Actually I've just acquired a 710 as a backup should my 910 pack up on my long trips to Slovakia and back.

I feel that TomTom should go back as they were a few years ago.
People didn’t mind paying a premium for what TomTom offered:
Excellent after sales support, Navcore upgrades with exciting new features and great devices, but this won’t happen.

I’ve owned a handful TomTom’s over the years, but wouldn’t consider buying a current model as they are so restrictive in their functionality and miss too many features.

TomTom should lead by reducing the cost of new maps to a fraction of what they currently charge.
For the price of updating the Europe map on my 910 I can buy a new Sat Nav from another manufacturer, where’s the logic in that?

I’d hate to see TomTom disappear Sad

Rant... rant… rant…


>> Currently using a TomTom Go 910, 710, TomTom for Android & Trumpion TR-G1 <<

 
Posted by james_uk9 on Fri Jul 01, 2011 8:41 am Reply with quote

Given the rapid explosion in Android marketshare, the mind boggles as to why they haven't developed an Android app yet?!?!

A missed opportunity there for sure.


Garmin XT

 
Posted by DeLorean on Fri Jul 01, 2011 12:21 pm Reply with quote

james_uk9 Wrote:
Given the rapid explosion in Android marketshare, the mind boggles as to why they haven't developed an Android app yet?!?!

A missed opportunity there for sure.


TomTom are and it should be available soon Very Happy

http://androidandme.com/2011/05/news/tomtom-navigator-is-coming-to-android-soon/

"TomTom is coming to Android soon, as Corinne Vigreux (TomTom’s MD) stated during an interview with PocketGPSWorld."


>> Currently using a TomTom Go 910, 710, TomTom for Android & Trumpion TR-G1 <<

 
Posted by Richard_GPS on Fri Jul 01, 2011 2:10 pm Reply with quote

I was a potential customer looking to upgrade my TomTom.... they decided NOT to allow user POIs so like lots of others I kept my money in my pocket & stayed with my 720. Very Happy

So as far as I'm concerned it serves the them right! The had an excellent product & tried to bully the end user and we voted against them.


 
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