TomTom Profits Fall - Share Price Nosedives

Darren

TomTom's share price fell sharply yesterday following a profits warning published by the Dutch satnav manufacturer on Monday. The share price fell nearly 25%, a loss of more than €300m in the company valuation to €794m.

The profits warning follows continued weakness in the consumer electronics market and a decline in the European and US PND markets. The US market in particular has seen a dramatic decline with a forecasted fall of 30%. European sales are expected to fall by 10% fall in the same period

With consumers increasingly opting to use smartphone based solutions and consumers choosing budget models, TomTom has been concentrating on building its business in the factory-fit in-dash market as well as commercial tracking and Live subscription services. Although they have enjoyed some success in these areas, deals with Renault and Toyota for example it remains to be seen if any of these can restore the company to financial health.

TomTom now expect their full year revenue to be between €1,250m and €1,275m. Revenue for Q2 is expected to be between €300m and €310m, some €200m below the expected level.

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Darren Griffin

rf065 · Lifetime Member Joined: Oct 10, 2005 Posts: 80

I've been waiting to buy the Go 1005, but have held off up to now as I want to use the pocketgps speed camera warnings and voice alerts, bulk loaded not one at a time. It would seem the Mapshare option now works, but how many people have delayed purchasing TomToms top of the range SatNav due to silly omissions. Profits are down and my money is still firmly in my pocket.

Russ

Andy_P · Posted: Wed Jun 29, 2011 3:10 pm Post subject:

rf065 · Lifetime Member Joined: Oct 10, 2005 Posts: 80

Are you sure? Last I heard the pocketgps cameras had to be copied one at a time and the spoken voice alerts for the camera warnings could not be loaded at all.

While my purchase is unlikely to save the company, there must be many like me refusing to buy a product that does less than the one it will replace.

Russ

tomtom_shareholder · Regular Visitor Joined: Apr 08, 2011 Posts: 64

I believe there is more to this.

TomTom says it's revenue will decrease from 1,5 to 1,2 billion. This is a 20% decrease.

But almost half of tomtoms revenue is not from PND's but from businesses that are not in decline, like licensing maps, business solutions, services. Those businesses are growing.

So, taken that in account, a decrease of 20% revenue overall, would mean a decline in PND by almost a half. Though I am very much aware of alternatives, such as smartphones, I doubt the fact that PND sales would be cut by almost a half only because of market conditions. There is still a market for dedicated devices.

I therefore assume that TomTom itself is planning to cut hardware. They are shifting more to content, services and software, and possibly they will significantly reduce the number of devices.

MaFt · Posted: Wed Jun 29, 2011 5:21 pm Post subject:

rf065 · Lifetime Member Joined: Oct 10, 2005 Posts: 80

Thanks, I may do my bit to save the company before heading through France & Spain in September!

Russ

Andy_P · Posted: Wed Jun 29, 2011 5:59 pm Post subject:

As well as now being able to transfer stuff all at once in MyTomTom, there is also the completely seperate "Content Transfer Assistant" utility which AUTOMATICALLY copies POIs, Voices, Car icons, etc. from an old model to a new one.

You can download it from the TT website HERE.

Most surprising thing is... it seems to work! Laughing

(but unfortunately for our transatlantic cousins, it doesn't seem to be available in the US yet).
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"Settling in nicely" ;-)

DeLorean · Posted: Thu Jun 30, 2011 9:16 pm Post subject:

james_uk9 · Occasional Visitor Joined: Apr 16, 2005 Posts: 26

Given the rapid explosion in Android marketshare, the mind boggles as to why they haven't developed an Android app yet?!?!

A missed opportunity there for sure.
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Garmin XT

DeLorean · Posted: Fri Jul 01, 2011 1:21 pm Post subject:

Richard_GPS · Occasional Visitor Joined: May 03, 2006 Posts: 8

I was a potential customer looking to upgrade my TomTom.... they decided NOT to allow user POIs so like lots of others I kept my money in my pocket & stayed with my 720. Very Happy

So as far as I'm concerned it serves the them right! The had an excellent product & tried to bully the end user and we voted against them.

MaFt · Posted: Fri Jul 01, 2011 4:04 pm Post subject:

cornz · Posted: Fri Jul 01, 2011 5:11 pm Post subject:

I returned mine (1005) which, as a long time tomtom user i never thought i would say that but its half a sat nav. Basic feautures are not implemented and you dont know when (if!) they will be. They should have finished them, then released them. Might not have had so many customers jump ship...

therm · Posted: Sat Jul 02, 2011 9:46 am Post subject:

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