TomTom Reports fourth quarter and full year results 2007

Feb 21 2008

TomTom Reports fourth quarter and full year results 2007

Record revenue and profit

Fourth quarter 2007 financial highlights
• Revenue of €634 million, up 49% sequentially and up 33% year-on-year
• Portable navigation device (PND) volume of 4.3 million, up 98% sequentially and up 123% year-on-year
• Gross margin of 42% and operating margin of 23%
• Fully diluted EPS of €0.87, up 6% sequentially and up 28% year-on-year
• Cash flow from operations of €155 million

Full year 2007 financial highlights
• Revenue of €1,737 million, up 27% year-on-year
• PND volume of 9.6 million, up 104% year-on-year
• Gross margin of 44% and operating margin of 25%
• Fully diluted EPS of €2.66 up 40% year on year
• Cash flow from operations of €535 million

Fourth quarter 2007 operational highlights
• Strong performance and European market share of 49%
• Strong growth and increased US market share of 27%
• TomTom HD Traffic TM service launched in the Netherlands
• More than one million Map Share TM reports and corrections received

Outlook 2008
• Continued strong growth of the European and North American PND markets; combined markets expected to grow by more than 50% to 38 million units in 2008, up from 24.5 million units in 2007
• Revenue expectation for 2008 of between €2.0 billion and €2.2 billion
• PND unit forecast for 2008 of between 14 million and 15 million
• Targets for gross margin and operating margin of 40% and 20% of revenue respectively