TomTom Reports first quarter 2009 Results
First quarter 2009 financial highlights 1
- Revenue of €213 million
- EBITDA of €15 million, EBITDA margin of 7%
- Net loss of €33 million
- Operating expenses reduced by 30% sequentially and 24% year-on-year
- Net debt of €1,159 million (Q4 2008: €1,109 million)
First quarter 2009 operational highlights
- New TomTom ONE and XL launched including functionality from high end products
- Tele Atlas released latest version of historical Speed Profiles database
- First shipments of new Renault Clio with built in Carminat TomTom
- Extension of relationship with Toyota announced
TomTom's Chief Executive Officer, Harold Goddijn said:
"Market conditions were challenging during the quarter, exacerbated by the destocking of the channel by distributors and retailers. Although sell in was difficult end user demand was in line with our expectations and it was encouraging that the market in North America continued to grow.
We are executing our strategy of becoming a broader revenue-based company. During the past months we have expanded our PND range, shipped our first in-dash line fitted solution for the volume car market and released new map databases with increased contribution from our growing community.
We are making clear progress with the transformation of Tele Atlas into a focused business to business digital content and services production company. Tele Atlas is making more and more use of the Group's unique technologies to improve its products.
We made good progress in reducing working capital in the quarter and we are well on track to achieve at least €60 million of savings in operating costs compared to last year."
Market and TomTom outlook 2009
Market demand was in line with our expectations in the first quarter. However, given the continued macro economic uncertainty visibility in our business remains limited. Therefore, we have decided not to update our 2009 full year guidance at the current time. If visibility in the market improves to a point where we feel it is prudent to offer full-year guidance, we will consider it at that time.
1 For comparative reasons pro forma 2008 figures are used that assume consolidation of Tele Atlas throughout 2008, unless stated otherwise. For comparative reasons we have excluded from the pro forma figures the one-off non-cash €1,048 million goodwill impairment in Q4 2008 and the one-off restructuring charges in Q4 2008 (€16 million) and Q1 2009 (€5 million).
2 Earnings per share adjusted for acquisition related amortisation, non-cash goodwill impairment and one-off restructuring charges on a post tax basis.