TomTom reports fourth quarter and full year 2016 results

Change percentages and totals calculated before rounding.

From a regional perspective, 78% of 2016 revenue was generated in Europe (FY '15: 77%), 17% in North America (FY '15: 18%) and the remaining 5% in the rest of the world (FY '15: 5%).

Gross margin

The gross margin for the quarter was 58%, which is 9 percentage points higher compared with 49% in Q4 '15. The year on year increase was mainly due to a change in our product mix, with a relatively higher portion of recurring high gross margin data, software & services revenue. In addition, the Q4 '15 gross margin was negatively impacted by an impairment charge of €11 million related to certain Automotive customer specific technology being recorded as part of cost of sales.

On a full year basis, we reported a gross margin of 57% in 2016 (FY '15: 52%). At constant currency rates for the US dollar and GB pound, our FY '16 gross margin and operating result would have been 1% higher.

Operating expenses

Total operating expenses for the quarter were €154 million, which is €15 million higher compared with the same quarter last year (Q4 '15: €139 million). The higher operating expenses were mainly driven by higher service platform charges and higher amortisation related to certain technology platforms that went operational in 2016.

On a full year basis, total operating expenses amounted to €557 million compared with €518 million in 2015, an increase of €39 million year on year. This increase is mainly caused by higher depreciation and amortisation costs. In addition, last year’s operating expenses included a one-off gain from a settlement of a litigation case.

FX sensitivity

(€ in millions, unless stated otherwise)   Q4 '16


actual
  Q4 '16
recalculated at
Q4 '15

FX rates1

  FY '16


actual
 

FY '16
recalculated at
FY '15

FX rates1

                 
Revenue   265.6   270.9   987.3   998.9
 
Gross result 153.0 158.2 566.2 578.6
Gross margin 58 % 58 % 57 % 58 %
EBIT -0.5 3.0 8.9 17.4
EBIT margin 0 % 1 % 1 % 2 %
FX RATES (IN €) Q4 '16 Q4 '15 FY '16 FY '15
US dollar 1.09 1.09 1.11 1.11
GB pound   0.87     0.72     0.81     0.73  

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