Adjusted EPS for the quarter was €0.09, compared with €0.10 in the same quarter last year.
Balance sheet
Our goodwill balance decreased sequentially by €169 million to an amount of €255 million following the impairment charge recorded in Consumer. The remaining goodwill is allocated to Automotive, Licensing and Telematics.
At the end of the quarter, trade receivables plus other receivables totalled €216 million compared with €231 million at the end of Q2 '16. The inventory level at the end of the quarter was €54 million, compared with €51 million at the end of the same quarter last year. Cash and cash equivalents at the end of the quarter were €85 million versus €136 million at the end of Q2 '16.
Current liabilities excluding deferred revenue were €248 million compared with €278 million at the end of Q2 '16.
Deferred revenue was €220 million at the end of Q2 '17, compared with €188 million at the end of the same quarter last year. The year on year increase reflects increased Automotive deferred revenue position on contracts with upfront payments for multi-year service offerings.
At 30 June 2017, we reported a net cash position of €82 million (Q2 '16: net cash of €58 million). Net cash is the sum of the cash and cash equivalents at the end of the period (€85 million) minus the nominal amount of the borrowings (€3 million).
Cash flow
The cash flow from operating activities for the quarter was €29 million compared with €33 million in Q2 '16. The year on year decrease in operating cash flow was mainly driven by lower operating results.
The cash flow used in investing activities during the quarter increased by €3 million year on year to €33 million (Q2 '16: €30 million) mainly reflecting increase of our investments in our digital map content.
The cash flow from financing activities was an inflow of €6.3 million, mainly reflecting cash inflow from the exercises of employee stock options offset by repayment of credit facility and borrowings. In the quarter, 1.8 million options (Q2 '16: 1.5 million options) were exercised resulting in a €8.8 million cash inflow (Q2 '16: €6.4 million).
- END –
TOMTOM NV
INTERIM FINANCIAL REPORT
30 JUNE 2017
(Unaudited)
Contents:
Semi-annual financial report
Consolidated condensed statement of
income
Consolidated condensed statement of comprehensive income
Consolidated
condensed balance sheet
Consolidated condensed statements of cash
flows
Consolidated condensed statement of changes in equity
Notes
to the consolidated interim financial statements
Semi-annual financial report
Introduction
TomTom NV (the ‘Company’) and its subsidiaries (together referred to as ‘the group’) is the world’s leading provider of location and navigation solutions. TomTom has more than 4,700 employees (FTE) working in its offices across all continents. The commercial activities of the group are carried out through four customer facing business units – Automotive, Licensing, Telematics and Consumer. Automotive and Licensing are engaged in developing and selling similar location-based application components such as maps, online services (e.g. traffic) and navigation software to customers in different market segments. Automotive serves automotive customers (mainly OEMs and Tier1 head unit vendors) while Licensing serves a wide range of non-Automotive customers. Telematics provides a wide range of telematics services and related products to fleet owners including sale and/or rental of hardware products associated with the services. Consumer generates revenue mainly from the sale of consumer electronics devices, such as PNDs and sports watches.
Market and TomTom outlook 2017
Within the Automotive & Licensing business we aim to grow through technology leadership in mapmaking information systems, traffic and navigation software. To achieve leadership we will invest in automation, modularity and industry standard interfaces. We are targeting new growth opportunities in ADAS and Autonomous Driving, investing in our HD map and RoadDNA technologies. Our Telematics business strategy is to continue to profitably grow our fleet management business and to diversify to other Connected Car services such as vehicle leasing.
Hardware revenues were lower than planned because of disappointing Sports sales. The wearables market has fallen short of expectations. Because of this and because we want to focus on our Automotive, Licensing and Telematics businesses, we are reviewing strategic options for Sports.
As a result, we are updating our revenue outlook. We now expect to
deliver full year revenue around the lower end of our guidance of
between €925 million and €950 million. Adjusted EPS <
