TomTom Reports Solid Second Quarter 2010 Results


THE HAGUE, Netherlands — Vehicle navigation system maker TomTom NV reported a 69 per cent rise in second quarter net profit Wednesday thanks largely to increased sales of maps and content to car manufacturers.

TomTom said its net profit for the quarter was €34 million (US$43.7 million), up from €20 million a year earlier while revenues slipped two per cent to €362 million from €368 million in last year’s second quarter.

TomTom maintained its forecast that revenues and profit would be broadly flat this year.

A growth area for TomTom was at its automotive division which sells maps and contents to car companies and their suppliers. Revenues grew 82 per cent to €44 million from €24 million a year earlier.

“We made some important steps this quarter with the development of our new software architecture, which will allow us to bring innovations to the market faster,” said CEO Harold Goddijn

The company said it was launching new products in the second half of the year that would boost demand, however it added that, “The stronger U.S. dollar is negatively impacting our margins and this will be more evident in the third quarter.”

TomTom said its market share in Europe rose from 44 per cent to 49 per cent compared to the same period last year while in North America market share grew from 19 per cent to 23 per cent.