TomTom Reports Higher Second Quarter Profit

[RobBrady]

TomTom has posted a rise in its second-quarter net profit. Its profit for the last quarter rose 69% to EUR34 million from EUR20 million a year earlier.

The rise was attributed to cost cutting and lower financing costs. However, they did experience a 2% drop in group sales from EUR368 million a year ago to EUR362 million due to falling prices for its personal navigation devices (PNDs).

TomTom has also increased its market share in Europe from 44% to 49% and the US from 19% to 23%. However, this increase is within a PND market that is shrinking overall. The fierce competition from free satnav on smartphones will inevitably dilute this part of TomTom's market even further.

The company's Q2 operational highlights include:

* The announcement of a premium PND range based on new software architecture

* Connected navigation being rolled out across 33 European countries

* The take up rate of in-dash solutions remaining strong with a 40% take up rate at Renault

* WORK increasing its subscriber base 42% year on year to 115,000

TomTom's Chief Executive Officer, Harold Goddijn said, "We made some important steps this quarter with the development of our new software architecture, which will allow us to bring innovations to the market faster. We will bring this new platform to our customers in 33 countries, firstly on our recently announced GO 1000 LIVE. Our new premium range PND will offer our customers a unique suite of services and features including HD Traffic and accelerated routing technology, providing our customers with the best guidance available with no hidden cost or additional charges when travelling abroad."
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Robert Brady
Editor, Pocket GPS World
The Premier GPS / SatNav Resource for News, Reviews and Forums

[Guivre46]

This is before the W&CE map glitch and the v9 update for x40 models - can't help TT's reputation.

What I'm more interested in are the sales figures for various models, does the market for Start, Ease and XL v2 confirm a demand for simple devices? If so is this the likely marketing direction, with perhaps only one or two premium models?
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Mike R [aka Wyvern46]
Go 530T - unsupported
Go550 Live [not renewed]
Kia In-dash Tomtom

[NickG]

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