TomTom gets more and more affected by the contraction in the market for pnds. The company’s turnover decreased in the fourth quarter of 2011 with a whopping 31 percent compared to last year, while the net profit with 67%.
The consumententak of the company had the most to suffer from the decline in demand for navigation systems in the car. Although TomTom is not absolute sales numbers informs, turnover in the fourth quarter with 40 percent, from 406 million to 242 million euros, compared with a year earlier. For 2011 as a whole fell, the turnover in that sector is 28 percent lower.
The market for pnds decreased according to TomTom in 2011 from 3.5 million units to 3.2 million copies in Europe, while in America the demand for such systems is still faster declined, from 6 million to 4.4 million pnds. Tomtom’s share in both markets rose slightly.
The turnover of the b2b division of TomTom, including the components, Automotive, Licensing and Business Solutions, showed a slight increase, while the revenue from the Live services with 10 percent, and increased to 107 million euro.
The total turnover decreased in 2011 to 516 million to 357 million euros, while net profit was down 36 percent, falling to 68 million euro. This is exclusively a ‘non-cash’depreciation of 512 million euros.
TomTom sees 2012 not rosy in. The company is uncertain about the progress of the sale of pnds this year because of uncertainty about the speed of the shrinking of the market and the uncertain economic climate. Think the company with its b2b activities to be able to further build on and are there perhaps opportunities in emerging markets. So increased recently the price of the company after it announced HD Traffic roll out in China. TomTom would do this in cooperation with a Chinese partner AutoNavi.