2006 promises to be an really successful year for Holland's largest Portable Navigation Device manufacturer. With a record number of 1.2 million PND's sold, Q3 can truly be called excellent.
These sales led to a nett profit of ¤73 million over the three months, which is 24% higher than the same period in 2005, and compared to Q2 of this year, the nett profit actually increased by 92%!
Success
Q3 has turned out to be such a success for TomTom, that they have decided to adjust their overall projection for 2006. They now expect an annual turnover of 1.3 to 1.4 billion Euro, where they were only predicting between 1.1 and 1.3 billion Euro before.
The number of devices sold this year will end up somewhere between 4.4 and 4.7 million units. That's significantly more than the 3.9 million units that were sold last year.
Orders
There were nothing but positive elements in TomTom's quarterly figures presented today. The market for PNDs is still expanding rapidly and the Dutch manufacturer is maintaining it's grip on the largest part of this market. This September, TomTom supplied more than 50% of all the PND devices sold in Europe and they are working hard at conquering the US as well, where their market share has risen significantly. The company was also pleased to announce a very positive-looking 2006 holiday season, claiming that their order-book is already full.
Introduction
The TomTom ONE New Edition is said to have made a very successful entry into the market. This device was released smoothly, unlike the x10 series which was plagued with shipping problems. By now, all models from the TomTom portfolio can be easily obtained by prospective buyers.
Despite the increasing competition, TomTom have succeeded in keeping their profit margins and prices on par. Their gross profit actually increased by 44% in Q3; and a margin increase of at least 40% gross is expected for the year overall, as is an operational margin of more than 20% above target.
Other news:
Posted on: October 26, 2006 - 21:16 hour
By:
Colin K
It would be very interesting if they also stated how many units were returned as "not fit for purpose".
Colin
Posted on: October 26, 2006 - 23:06 hour
By:
saldous
They would have made more money had it not been for all those badly designed Go 5/7/910 mounts that drooped / didn't charge the units and had to be replaced.
Posted on: October 26, 2006 - 23:56 hour
By:
timber
In my opinion this rate of growth is not sustainable if I had shares in the company it would be sell sell sell.
There is a limit to new customers and those upgrading, past experience/ poor mapping / customer service / poi's that are no where near there true location will alienate their customer base.
When I buy a brand new PND I expect the latest mapping not something that is up to 2-3 years old and out of date.
Poi's example of error the hospital which is closest to my location is on the wrong road and to get anywhere near it will involve climbing over a 12 foot wall (imagine you are a visitor to the area this error could be catastrophic) need I say more.
Posted on: October 27, 2006 - 15:19 hour
By:
Gasman
Nearly 1.2 million units sold in 3 months, little wonder we're still awaiting decent and up-to date map upgrades; TT seems to be concentrating on high volume sales and makes me wonder if the directors have plans to sell the company - such a high volume of sales in such a short time would be very appealing to the likes of Bill Gates.
I have to say I'm delighted with my TT as it does everything I expect from a PND but I think when my TT gives up the ghost, I'll have a good look at the competition before deciding on a replacement.
The accuracy of the maps on competitors units will play a significant role in my final decision.
Posted on: October 27, 2006 - 16:42 hour
By:
daadoodoo
Gasman, I have serious doubts that MS would have any minimum interest on acquiring a company whose all devices are based on linux. And if they did, the tomtom devices would be no more tomtom devices, as it'd require a complete rewrite to support WinCE.
My curiosity right now is to know when Google would create their own navigation system ;) Not sure if they'd be interested on hardware thing at all, though.
Posted on: October 28, 2006 - 00:02 hour
By:
Alex
We ordered 15 TT700 and shortly after we returned 14 of these units.
We talked to TT support line with lack of map software and any possibility of upgrading the map soon, well, they did not know, they could not make any comments, no knowledge, ....
I am wondering when TT going to realize a big success is to provide good support in timely manner.
I am still using my TT700 and it has been working properly 50% of the time for me.
So far, our company ordered 25 TT's competitor unit.
I believe TT will be continuously grown as long as provide a good support.
We will wait and see if their sales will be continuously increased or not.
I know our company is not going to purchase any more TT no matter how it has been rated until they change their strategy.
Good customer service brings more customers, keep the customers, more sales and much more money.
Posted on: November 1, 2006 - 18:37 hour
By:
gaw
I am in the uS, and purchased a GO910 last spring. The main reasons were the price versus the maps installed. It had both the north America and European maps installed and available at no extra charge. Both Garmin and Mageliian charges several hundred $ more for access the these. Since then, I have been frustrated with the sloppy POI and destination errors, the lack of the traffic receiver here, and custoer service in general.
Based on reviews of competing units plus the common experiences owners in Europe are having with customer service and updates and PIO errors, irt looks like their # 1 position there may be threatened and they may never achieve it here (they are # 2 for now).
I was wondereing why they did not bring out the traffic receiver in the US as they had been promising since March,while they did finally release it there. With Garmin coming on strong there, they are probably protecting home turf first.
I see they are going to issue new stock soon, but this info is not available in the US. Curious as to how much they are trying to raise and what they intend to do with it (expansion of facilities, marketing, or maybe improved customer service - hah!). If there is a link somewhere on this forum to their filing - i would be interested in knowing (I cannot access it through TT homepage from here).
PS - if you are looking to sell the company, you dodn't issue new stock and dilute principle owners positions.
Forum
16-05
October 26, 2006 - 20:00 h
