By On Jul 24 2012 - 12:47pm

TomTom Posts Q2 Profit On Lower Revenues

Net income was 8.915 million euros compared with a loss of 489.3 million euros year on year. Revenue was 262 million euros, down 17 percent from the prior year’s 314 million euros. Harold Goddijn, CEO, commented in a statement, “Since we communicated that we would be taking a more modular approach to our products, selling map content, navigation software and HD Traffic as stand-alone solutions, we have signed a number of deals, especially in the automotive sector. Although the revenue impact of these deals will not become visible immediately, they are forming the foundation for the future growth of the business. In addition, they provide us with a clear indication that this strategy for unlocking more of the value of our core assets is resonating with customers.” TomTom reported that revenue in its consumer business unit in the quarter was 155 million euros, a 54 million decrease year on year. The decrease was driven by lower PND sales as the PND market sizes in the company’s core geographies declined in an overall weak consumer electronics market together with the impact of the GPS chip related product issue, TomTom said. The North American market size was 1.7 million units, compared with 2.1 million units last year. Its market share in the North American market share was impacted by the GPS chip related product issue and declined from 23 percent to 19 percent. “We currently see our North American market share slowly recovering towards more normal levels,” the company said.