TomTom shares drop as consumer spend declines

Darren · Last edited by Darren on Mon Oct 06, 2008 1:25 pm; edited 2 times in total

Source: GPS Business News

TomTom's share price has fallen to a new low following concerns about possible re-financing of the sat-nav manufacturer being necessary. TomToms liquidity had already being called into question following the take over of TeleAtlas earlier in the year. On Friday TomTom shares were trading under 11 euros compared with their high of 66 euros in October of last year.

Data courtesy of Yahoo Finance

Falling margins on PND's and the economic climate reducing consumer spend with worse to come has resulted in fears of a refinancing deal being necessary.

TomTom are not alone with many fearing huge drops in profit compared with earlier forecasts and it is possible that some of the smaller market players may disappear as a result.
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Darren Griffin

bedbug · Posted: Mon Oct 06, 2008 12:11 pm Post subject:

Deep joy!

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iPhone 4/4S (iOS 5.1.1); TomTom Western Europe (1.10)/USA & Canada (1.10); CoPilot for iPhone (8), UK mapping, Mac OS 10.8/XP Pro/Win7; Tongue firmly in cheek!

SpikeyMikey · Posted: Mon Oct 06, 2008 2:10 pm Post subject:

Maybe a new Navigator release for PPC might help cash flow Embarassed

I'll get my coat!
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Mike
TT GO6000 (Europe); iPhone and iPad Pro with iOS TT GO & MyDrive + CamerAlert

bedbug · Posted: Mon Oct 06, 2008 2:18 pm Post subject:

Darren · Posted: Mon Oct 06, 2008 3:33 pm Post subject:

Kar98 · Posted: Mon Oct 06, 2008 3:46 pm Post subject:

bedbug · Posted: Mon Oct 06, 2008 3:55 pm Post subject:

That's got to be the biggest long-term concern for TomTom; the same GPS business news also carries tale of an analyst predicting the market will soon shift from PNDs to mobile devices (I've been saying it for yonks, but there again I'm just anal, not an analyst!).

Now unless I'm mistaken, TomTom's strategy of partnering with a specific smartphone manufacturer signals them transitioning to a PND incorporating mobile phone technology platform, which is not, as far as I see, the same as addressing the mobile devices market.

If all their experience in the market tells TomTom they can't be successful in the mobile device space, then today's drop in valuation is just the tip of an extremely slippery iceberg!
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iPhone 4/4S (iOS 5.1.1); TomTom Western Europe (1.10)/USA & Canada (1.10); CoPilot for iPhone (8), UK mapping, Mac OS 10.8/XP Pro/Win7; Tongue firmly in cheek!

Darren · Posted: Mon Oct 06, 2008 4:03 pm Post subject:

StuartStrangeboy · Regular Visitor Joined: Nov 09, 2005 Posts: 84

That's an interesting point about mobiles because it is far easier for mobile companies to add sat nav then it is for TomTom to become a phone.
Having said that PND's will always have there place it will just be interesting to see what happens. But agree this is not good news at all.

SpikeyMikey · Posted: Mon Oct 06, 2008 4:54 pm Post subject:

That share price in Darrens original post has now dropped to 9.28 (-13.18%). If I've interpreted the data properly thats -50% (approximately) in one month!

First ViaMichelin pull out, now Tom Tom are suffering (Although I'm sure they'll survive). The way things are going I'll have to nick the wifes Orbit with CoPilot6 back Smile

Any rumours about ALK? Wink

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Mike
TT GO6000 (Europe); iPhone and iPad Pro with iOS TT GO & MyDrive + CamerAlert

lillyelse · Posted: Mon Oct 06, 2008 5:52 pm Post subject: TomTom

I'm not at all surprised at the pending demise of TT, for all the reasons aforementioned.

TT may now realise they can't treat everyone like bandits in attempting to steer the satnav market in the PND direction they have decided is the way forward.

Maybe, a more sensible approach to customer's needs and aspirations may have avoided this situation arising in the first place, aided and abetted by a disregard for after-sales support for the buyer of TT products.

They even had the cheek to email me with a cut-price offer for their outdated map of WE, version....6.75! This is the very map that almost attached a pair of wings to my back during a misdirection in Norwich, and again in the west Midlands near Wolverhampton, not to mention Cornwall.

bedbug · Posted: Mon Oct 06, 2008 8:07 pm Post subject: Re: TomTom

Zebb · Occasional Visitor Joined: Aug 28, 2008 Posts: 55

A low of €8.9 today. (First time I've used the Euro symbol).

Not so smug now TomTom.

lillyelse · Posted: Mon Oct 06, 2008 11:49 pm Post subject: Channel crossing

That Swiss guy with wings was heading for the Bristol Channel using the scenic route, but TomTom messed up the lane guidance.

Must have been using WE map version 6.75!

smiley1081 · Occasional Visitor Joined: Mar 08, 2006 Posts: 51

Doh...

When a few months back I predectied somewhere that Garmin was going to buy Tomtom for dimes I was kidding in truth, but it seems that it could happen soon...

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