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TomTom releases second quarter report

Netherlands: TomTom has announced its first half-year results with top line growth and an improved gross margin. Group revenue for the quarter was EUR252 million, a 1% increase compared to EUR250 million in the same quarter last year. The year-on-year growth in revenue came from the strong increase in Telematics revenue partly offset by a modest decline in Consumer and Licensing revenue.

Harold Goddijin, CEO, TomTom group

Consumer revenue for the quarter was EUR169 million, slightly lower compared to EUR172 million in Q2 '13. Automotive revenue for the quarter was EUR31 million, an increase of 1% compared to the same quarter last year. Licensing yielded revenue of EUR27 million for the quarter, which is 5% lower compared to EUR29 million in Q2 '13. The year-on-year decrease shows the impact of phasing out a major contract in the first half of last year partly offset by a year on year increase in GIS revenue.

Commenting on the Q2 results, CEO Harold Goddijn said, "The development of our new real-time map-making platform will result in better maps at lower cost. The platform is scheduled to roll out from late this year onwards. Our new map is continuously releasable and processes sensor and crowd-sourced data from our own and customer applications in near real-time." It's collaboration with AOL's MapQuest has been extended to power core mapping services across all its digital platforms.

Source: TomTom