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Interesting financial analysis of TeleAtlas

 
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uocooper
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Joined: Nov 15, 2005
Posts: 63
Location: Portland, Oregon

PostPosted: Sat Mar 25, 2006 9:08 am    Post subject: Interesting financial analysis of TeleAtlas Reply with quote

Take a look at this PDF- http://www.basefinanciera.com/finanzas/publico/club/clubfundamental/a_externos/TeleAtlas_ABN_060103.pdf

Here are some of the more interesting tidbits. The PDF is dated January 2006.

Quote:
Maintaining and refreshing the database
Validating maps, detecting changes in the database and providing current data in the
form of updates is critically important to Tele Atlas’ business, because approximately
15% of the road network in any given country is affected by natural or man-made
changes every year. Approximately 85% of these changes can be detected and
adjusted through compilation methods, which requires hardly any human input. For
this purpose only, Tele Atlas sources data from more than 20,000 different
government and commercial sources in Europe and an additional 30,000 in the US.
The other 15% must be detected and adjusted using far more expensive field
surveys. For this purpose, Tele Atlas has 32 mobile mapping vans in Europe and 9 in
the US. Tele Atlas gained full control over this technique through the acquisition of
GeoInvent in September 2005, for which it paid €6.5m. These vans use six digital
cameras, along with sophisticated electronics, to allow data collectors to drive
through an area at normal speed while taking video footage. This footage is later
analysed and entered into the database by an army of 800 people in India (they do
the European part) and 200 in the US. The work in India is being done by partner
InfoTech, in which Tele Atlas still holds a 3% stake. In addition to the vans, Tele
Atlas has 80 standard cars in Europe and 60 in the US to perform inspections.


Quote:
As Tele Atlas was lagging Navteq in the US, it accelerated investments in this area.
Since the US already has a firm potential client base and personal navigation clients
such as TomTom demanded US coverage, lagging Navteq was not acceptable.
Therefore, Tele Atlas increased its investments in the US substantially over the past
two years, inflating capitalisation costs in 2004. Coverage in the US is nearly
complete now (we estimate at 70%), which is why we expect capitalisation costs to
decrease further in 2006. Investments in Eastern Europe/Russia and Central America
are driven by tourism from Western Europe and the US, which is why limited
coverage in these areas will probably do for now. Furthermore, Tele Atlas does not
really lag Navteq in this area.


Quote:
Navteq and Tele Atlas charge a higher price for maps used in inbuild
than for the same maps used in personal navigation. Navteq is said to charge
€60-70 for a map used in in-build and Tele Atlas about €55. For personal navigation,
both companies charge around €25.

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Skippy
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PostPosted: Sat Mar 25, 2006 8:40 pm    Post subject: Re: Interesting financial analysis of TeleAtlas Reply with quote

uocooper wrote:
Take a look at this PDF


A very interesting read, well spotted!
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