“We delivered top-line growth in 2015, for the first time in five years. The weakening of the euro in combination with higher investments in our core technologies affected our profitability negatively in 2015. As a result, our EBIT for the year was at break-even. The net result for 2015 was €18 million, which translates to adjusted earnings per share of €0.21.
Consumer continued to make further inroads in establishing a multi-product consumer business with GPS sport watches and action cameras. Automotive broke the 2014 record of new bookings, Licensing delivered strong growth through existing and new customers and Telematics saw continued strong growth in installed base and recurring revenue.
We made substantial progress with our core technologies across the group. We completed the move to our new map-making platform this year. This platform is the first of its kind in the industry and a leap forward in map-making technologies. We have integrated the NDS map format into our navigation software on device-based and server-based navigation applications and we continued to increase our market share in traffic, increasing our global coverage and enhancing our traffic services.
Our skills and expertise in location data and technologies give us confidence that TomTom is well positioned to capture on growing opportunities in the area of Autonomous Driving, Connected Car, Fleet Management services and Consumer Wearables.”
Outlook 2016
In 2016, we plan for revenue to grow to around €1,050 million. Adjusted EPS1 is expected to grow by around 10% to €0.23.
We expect the level of investment (both CAPEX and OPEX) in our core technologies to be higher than last year. In particular, we are investing in advanced content and software for the automotive industry (e.g. to enable Autonomous Driving) and in our new map-making platform.
Financial and business review
Group revenue
We generated revenue of €282 million in the fourth quarter, an increase of 9% compared with €258 million in Q4 '14. We saw growth coming through across all four business units in the quarter.
In 2015, we delivered revenue of over €1 billon, 6% higher compared with €950 million in 2014. Our Licensing, Telematics and Consumer Sports businesses grew strongly to offset the reduction in PND revenue, which remained the biggest revenue contributor for the group. Our Automotive business showed a modest decline year on year. This decline is mainly due to the phasing out of certain legacy contracts.
Consumer
|
(€ in millions, unless stated otherwise) |
Q4 '15 | Q4 '14 |
y.o.y.
|
FY '15 | FY '14 |
y.o.y.
|
||||||||||||
| Consumer products | 156.7 | 155.7 | 1% | 551.2 | 548.4 | 1% | ||||||||||||
| Automotive hardware | 19.2 | 16.4 | 17% | 72.4 | 70.7 | 2% | ||||||||||||
| Total Consumer revenue | 175.9 | 172.1 | 2% | 623.6 | 619.1 | 1% | ||||||||||||
|
|
||||||||||||||||||
| Consumer segment EBITDA | 14.1 | 55.3 | -75% | |||||||||||||||
| EBITDA margin (%) | 2% | 9% | ||||||||||||||||
| Consumer segment EBIT | 2.6 | 36.2 | -93% | |||||||||||||||
| EBIT margin (%) | 0% | 6% | ||||||||||||||||
| Key PND market data | ||||||||||||||||||
|
Europe 2 |
||||||||||||||||||
| Market size (# units sold in millions) | 1.8 | 2.0 | -10% | 6.8 | 7.4 | -8% | ||||||||||||
| TomTom market share | 54% | 53% | 52% | 52% | ||||||||||||||
|
North America |
||||||||||||||||||
| Market size (# units sold in millions) | 0.9 | 1.3 | -28% | 3.2 | 4.0 | -22% | ||||||||||||
| TomTom market share | 15% | 13% | 17% | 15% | ||||||||||||||
|
Change percentages are based on non-rounded figures. |
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