TomTom Sells 80K iPhone Apps
By Amy Gilroy -- TWICE, 10/28/2009
Amsterdam - TomTom said it sold close to 80,000 downloads of its $99 GPS iPhone application since August and announced third-quarter results.
For the quarter ended Sept. 30, both sales and profit fell compared with last year although TomTom profits rose 53 percent when compared with the second quarter this year.
Total profits were the equivalent of $46 million for the quarter ended Sept. 30, down 47 percent from $86 million for the same quarter last year, but up from $30 million in profits in the second quarter this year.
Sales totaled $540 million, down 15 percent from $635 million for the quarter last year and down one percent from the second quarter.
TomTom said portable navigation devices (PNDs) are on track to reach sales of 17 million in North America and 15 million in Europe for the full year 2009. PND sales for the quarter in North America rose three percent to 3.4 million units from 3.3 million during the period last year. In Europe, PND third quarter sales were up by 7 percent to 4.1 million units.
TomTom said it sees the slightly upward trend in unit sales over last year to continue into the fourth quarter.
The average selling price of a PND was $146, down 27 percent compared with $201 in the quarter last year, and down 12 percent from $166 during this year's second quarter.
The company noted, however, it continues to diversify beyond PND sales. "In the past twelve months we were able to increase the contribution of non-PND revenue from 20 percent to 30 percent of group revenue," said chief executive Harold Goddijn. This included expansion into automotive navigation and the release of an iPhone application and an iPhone kit.
Sales for the Tele Atlas subsidiary were $70 million for the quarter, down eight percent from $77 million for the year-ago quarter, but up three percent from the second quarter.
TomTom also claimed it is ahead of schedule to achieve a $133 million savings in operating expenses in 2009 over last year. Total operating expenses for the quarter were $180 million, down 5.7 percent compared to the second quarter.
The company reduced its net debt resulting from the purchase of Tele Atlas to $886 million, down from $1.5 billion.
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