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TomTom Reports Net Loss of £870m
 TomTom profits have nose-dived with the Dutch company reporting a £870m net loss this morning.
Although there was a pre-tax profit of £72m for the quarter, down 46% on the previous year, revenue fell 17% and they have written off Euro 1bn from the value of TeleAtlas which it purchased for Euro 2.9bn only a year ago.
Shares have fallen below £2.60 for the first time compared with their all time high of £59.00. TomTom are now admitting there is a possibility that the terms of its bank loans "could be breached".
TomTom CEO Harold Goddijn said, "Despite the tough market conditions TomTom traded profitably and was significantly cash generative in the quarter. We expect trading conditions to continue to be challenging throughout 2009 and we are adjusting our cost base accordingly."
TomTom still dominate the satnav market in many territories and despite the grim results they are well placed to ride the recession.
Harold Goddijn, "All of this gives me confidence that our strategy is right and that we will successfully transition into a more broadly based company."
| Comments
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 Posted by andy-c1 on Tue Feb 24, 2009 10:22 pm |
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well if they don't buck up fast they will go under there is no doubt as from what i hear more and more people will never buy a TT again and I am slowly going down that road too
TomTom 5001 |
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| Posted by mikealder on Tue Feb 24, 2009 10:42 pm |
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What is needed though is some serious competition, I don't see any new devices from other manufacturers that can come close in terms of capability or ease of use to that offered by TomTom.
What I would like to see from TomTom is a consolidation of software to get the existing products working as they should do, recent software upgrades have ruined a number of device ranges.
Lets face it an 18 month old x20 device will have cost the purchaser £275+ when new, and when it was new all the advertised features worked. Look at that purchase now though, more money expended on newer maps and a device that is clearly sub standard.
This is a sure fire way to annoy loyal customers, I would like to see a few basic faults sorted out before yet another barrage of new devices and more useless bells and whistles are added to the unit.
Will we will have to put up with wireless rear view cameras through the TomTom next or even something to turn the cars lights on and off - a bit like the weather service - useless - Mike
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| Posted by SpeedCam on Tue Feb 24, 2009 10:57 pm |
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Agree with you Mike, TomTom have too many products all offering very similar functionallity which some customers will find confusing. They need to sort some simple problems:
1. Fix existing bugs and problems before releasing new devices.
2. Standardise on common components, eg use a single mounting system for all devices a One XL should be able to use a x40 mounting bracket.
3. Value add services (Live & Map updates) pricing needs to be reviewed, how many customers will be paying £8 for the Live services. TomTom have invested alot of money in backend infrastructure, reduce the monthly costs to £5 and double the number of subscribers.
I would like to think that this loss will give TomTom a big kick up the backside, but many of us long time users will know how bad their customer services and product development really are.
Speedcam
Model : HTC HD2, HTC Magic, iPhone 3g, GO 740, XL GO Live |
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| Posted by Trevor1234 on Wed Feb 25, 2009 1:21 pm |
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Despite all the grouses about Tomtom its still the best device around and is the market leader. And, if they are feeling the pinch I would guess that some of their lesser competitors will fall by the wayside in the near future.
Tomtom Go 720.
Navcore 9.510
Central and Western Europe v855.2884
GPS World Traffic cameras
Home 2.7
iPhone 3G |
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| Posted by dhn on Wed Feb 25, 2009 1:38 pm |
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Not the market leader in NA. Garmin is. And their results are much healthier than those of TT. See here
David |
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| Posted by emjaiuk on Wed Feb 25, 2009 1:38 pm |
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| Trevor1234 Wrote: | | Despite all the grouses about Tomtom its still the best device around and is the market leader. |
And that says a lot for the GPS/PND industry. Why is it so difficult for anyone else to give TT a run for their money.
Go740L App 9.510 Europe 985.8155
RDS_TMC mount
Home 2.8.3.2499 Win10 Home |
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| Posted by Kremmen on Wed Feb 25, 2009 3:26 pm |
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As I drive around I note that an awful lot of cars now have a SatNav device on show.
I think the problem that TT (and the others) have is that the people who want SatNav now have it and it's not the sort of thing you buy regularly.
The SatNav boom is over and they need to realise it, cut back, and improve reliability and customer support apparently.
DashCam:
Viofo A119 V3 |
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| Posted by matthewj on Wed Feb 25, 2009 4:21 pm |
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| Kremmen Wrote: | As I drive around I note that an awful lot of cars now have a SatNav device on show.
I think the problem that TT (and the others) have is that the people who want SatNav now have it and it's not the sort of thing you buy regularly.
The SatNav boom is over and they need to realise it, cut back, and improve reliability and customer support apparently. |
Good points. With the credit crunch, you have to have something special to make people convert. I think HD traffic could be it, but they need to have it very reliable to have it make the difference they need.
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| Posted by jimbo_hippo on Wed Feb 25, 2009 6:00 pm |
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MikeAlder's post is spot on. The last paragraph should be in all our sig's! He's said in a nutshell how everyone feels after just about every single post on here.
Tom Tom GO 720
Orange M3100, Orange SPV M5000
TomTom Navigator 6, Destinator 6
Holux GPSslim |
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| Posted by gatorguy6996 on Wed Feb 25, 2009 7:45 pm |
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Even more worrisome is that TeleAtlas generated even less revenue last year than in 2007, losing 9million euros all by itself. Little headway in selling maps to other pnd manufactures with fully 73% of all the maps sold going directly to TomTom. Even one of their better customers. Mio/Mitac, has just recently started offering Navteq mapping in some of their devices. Trading money internally will result in further losses, in value as well as revenue. New customers are their only hope, and so far it's not happening. The huge costs involved in outbidding Garmin looks more and more like a huge mistake in judgement.
Garmin 1695 / 255 / 760 w/MSN - Droid w/Google nav + Navigon - Navigon 8100T - Dakota10 - GPSMap76C - GeoMate Jr. |
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