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Revenue up for Chinese mapmaker

China

Chinese mapmaker and LBS supplier AutoNavi Holdings Limited today announced a strong performance in its fourth quarter 2010 with net revenues of $23.0 million, an increase of 46.7% year-over-year and and operating income of $6.7 million, 88.7% growth year-over-year.
Net revenues in fiscal year 2010 were $85.8 million, an increase of 50.0% year-over-year while the operating income was $23.3 million, an increase of 49.8% year-over-year.

Net revenues from the automotive navigation market in the fourth quarter of 2010 were $16.7 million, an increase of 52.5% year-over-year and a decrease of 6.5% sequentially. “The year-over-year increase in revenues was mainly due to an increase in the number of copies of digital map data licensed for use in in-dash navigation systems, which is directly linked to the number of vehicles sold in China equipped with these systems. The sequential decrease was mainly due to a decrease in the number of copies of digital map data licensed for use in in-dash navigation systems as compared to record sales in the third quarter of 2010,” said AutoNavi.

Net revenues from the public sector and enterprise applications market in the fourth quarter of 2010 were $3.2 million, an increase of 18.1% year-over-year and a decrease of 2.0% sequentially. According to AutoNavi, “The year-over-year increase was primarily attributable to an increase in revenues from both the aerial photogrammetry business and the enterprise solutions business due to new contracts entered in fiscal year 2010.”

In the third segment, wireless and Internet location-based solutions, net revenues were $2.7 million, an increase of 49.4% year-over-year and 2.7% sequentially. The year-over-year increase was primarily due to an increase in revenues derived from the pre-installation of the Company’s navigation solutions on certain mobile phone models and an increase in revenues from the Company’s Internet map application business.

AutoNavi’s CEO Congwu Cheng commented, “We believe that strong growth in the middle and high-end car sales markets will continue to provide a stable and increasing source of revenue for our business. To leverage our core navigation expertise, capitalize on the fast-growing smart phone and device markets as well as China’s increasing mobile internet user-base, and to diversify our revenue streams, we have begun to deploy meaningful resources to develop our wireless location-based media platform. We expect to devote more resources in the coming quarters towards the execution of this strategy, which we view as one of the most fundamental evolutions in our company’s operating history.”

Source: GPS Business News