Chicago — GPS map provider Navteq reported total revenue rose 24 percent to $180.7 in the fourth quarter, ended Dec. 31.
Net income rose 55 percent over last year’s fourth quarter, to $42.9 million.
For the United States, revenue grew 17 percent for the quarter, to $66.3 million, and 25 percent for the full year, to $216.2 million.
Looking at the full year 2006, however, net income fell to $110.0 million, from $170.8 million in 2005, while revenue grew 17 percent to $581.6 million.
Navteq president and CEO Judson Green said the revenue shortfall was due in part to a shift in new car sales away from luxury vehicles and larger SUVs, which have the highest take (purchase) rates for navigation.
On an earnings call, Navteq presented an overview of the navigation market for 2006 and the coming year. For U.S. in-dash navigation in new cars, the adoption rate (percentage of cars sold that offer navigation) increased to 51 percent in 2006, compared with 41 percent in 2005. By contrast, the adoption rate in Europe of over 80 percent.
The penetration rate (percentage of total new cars actually purchased with navigation) increased almost 2 percentage points rate to 8.4 percent compared with 6.7 percent in the prior year in North America. Hard drive platforms increased to 13 percent in North American and is expected to increase to 32 percent.
Sales of personal navigation devices (PNDs) in the United States nearly tripled in 2006.
In-dash navigation accounted for 62 percent of Navteq’s revenues compared with 70 percent in 2005. Portable devices rose to 25 percent of Navteq’s revenue compared with 19 percent in 2005, and Internet and wireless products accounted for 5 percent in 2006, flat with 2005.
Forecasting for 2007, the adoption rate of navigation in new vehicles should increase to 65 percent, from 51 percent in 2006 and penetration should increase one percent. PNDs should see an overall 50 percent increase in sales in Europe and the United States.
During 2006, Navteq acquired The Map Network and announced plans to acquire Traffic.com in a deal that is expected to close in early March.