TomTom Reports Second Quarter 2017 Results

Automotive & Licensing combined revenue in the quarter was €87 million (Q2 '16: €68 million). Automotive generated revenue of €48 million in the quarter, representing a 39% increase year on year. This increase mainly came from the ramp-up of a new contract that went live last year. Licensing revenue in Q2 '17 was €39 million compared with €33 million in the same quarter last year. The year on year increase in Licensing included a catch-up of content delivered in earlier quarters for which revenue recognition criteria were not yet met.

In the quarter, we completed the expansion of the TomTom HD Map product to cover all highways in Western Europe. That’s 175,000 kilometres of highways across 19 European countries, bringing the total coverage of TomTom’s HD Map and RoadDNA to 360,000 kilometres, including the US. The geo-expansion of TomTom Traffic continued with countries in Eastern Europe and the Middle East, bringing the total to 64 countries.

We also announced that weekly global map database updates, delivered by our transactional mapmaking platform, are now available for business customers. The industry norm for global automotive grade maps is quarterly map releases; TomTom moved beyond this in 2016 with monthly updates and has now taken a step further by introducing weekly map updates.

We announced several partnerships, supporting Autonomous Driving and Smarter Mobility, with industry leaders.

We have joined forces with Baidu to develop global HD maps for Autonomous Driving, creating a globally unified HD map service for OEMs and technology companies who are working on the future of driving. The collaboration combines our expertise in HD mapmaking and artificial intelligence (AI). Baidu will use our mapmaking platform to improve HD map-related technologies utilised in China.

Together with Bosch, we will create an HD map with integrated Radar Road Signature layer for the localisation of vehicles in Autonomous Driving. The Radar Road Signature layer will allow automated vehicles to determine their exact location on a road down to a few centimetres, working in conjunction with the TomTom HD Map. This additional localisation layer greatly increases the robustness of localisation under all circumstances.

In addition, we are developing ultra-fast lane-level traffic technology. Research will be done in cooperation with Cisco to use roadside data captured by Cisco’s array of sensors, routers and controllers to create the next generation of traffic information technology. With this project, we are connecting road infrastructure, vehicles, drivers and road authorities, enabling them to exchange information in near real time. This cooperation is expected to reduce latency and increase accuracy of real time traffic services, while reducing the costs of traffic monitoring infrastructure.

Telematics

(€ in millions, unless stated otherwise)   Q2 '17   Q2 '16  

y.o.y.
change

  H1 '17   H1 '16  

y.o.y.
change1

                         
Subscriptions   31.3   29.2   7%   62.0   58.1   7%
Hardware and other services²   8.8   10.7   -17%   18.7   18.9   -1%
Total Telematics revenue   40.1   39.9   0%   80.7   77.0   5%
                         
Monthly revenue per subscription (€) 14.0 15.0 -7% 14.2 15.4 -8%
Subscriber installed base (# in thousands)   762   652   17%   762   652   17%

1 Change percentages and totals calculated before rounding.

2 Other services revenue comprises installation services and separately purchased traffic service and/or map content.

 

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