** Automotive map sales are included in Automotive
In order to provide more insight into our business performance we are reporting a new revenue segmentation as of this quarter. The split will show the revenue by business unit (Consumer, Automotive, Licensing and WORK) and by segment (Hardware and Content & Services).
In the quarter, TomTom’s PND market shares grew in both Europe and North America. Compared to the same period last year, our market share in Europe grew from 45% to 47% and from 21% to 22% in North America. In Europe, the PND market size was 2.7 million units compared to 3.2 million units in the same period last year. In North America the market size was stable with 2.6 million units compared to the first quarter of 2009.
At the beginning of the year, we introduced our new entry-level PND in North America, the TomTom EASE. The device has the Enhanced EasyMenu™ user interface with a simple two-icon touch screen, which we introduced at the end of 2009 on the TomTom Start in Europe. At the end of the quarter we also introduced new versions of the TomTom Start and XL in Europe.
Geographically, we expanded our map coverage to more than 100 countries across the globe by introducing Tele Atlas maps for the Ukraine and an expanded map for India. TomTom PNDs became available in Mexico and Morocco in the quarter, increasing our presence in the Central American and North African markets.
We introduced our latest location and navigation content to meet the demand for Advanced Driver Assistance Systems (ADAS). Focused on the automotive industry, Tele Atlas’ ADAS includes gradient, road curvature and highest quality geometry. These features can be used to create different applications which include eco-routing, adaptive cruise control, energy management, headlight steering, road preview and curve warning.
We strengthened our relationships in the automotive industry through new agreements with Alfa Romeo and Ford. As part of our agreement with Fiat, the Blue&Me TomTom solution will be introduced in the new Alfa Romeo MiTo and Giulietta. Beyond all the standard navigation functions, the solution also displays and manages vehicle information. In addition, Ford announced that it will use Tele Atlas maps and location content for North America, South America and the Middle East in the newest version of its in-car connectivity system, SYNC™, and in all vehicles equipped with the new premium navigation option for MyFord Touch.
WORK passed the 100,000 subscribers milestone for its fleet management service and grew its subscriber base by 41% year on year to 104,000.
Financial review
Revenue
Revenue for the group was €268 million for the quarter, a year on year increase of 26% (Q1 2009: €213 million) and a decrease of 50% sequentially (Q4 2009: €533 million). First quarter revenue grew strongly compared to the same quarter in the previous year driven by growth in all four business units. The decrease compared to the previous quarter reflects the seasonal pattern of our business.
The revenue of the Consumer business over the past quarter amounted to €186 million, an increase of 16% compared to the same quarter last year (Q1 2009: €161 million) and a decline of 58% compared to the previous quarter (Q4 2009: €448 million). The year on year increase results from a strong increase in our revenue from content and services, as well as an increase in our PND hardware revenue.
Automotive revenue, which includes map and content sales to automotive companies and their suppliers, grew by €27 million or 216% to €39 million compared to the same quarter last year (Q1 2009: €12 million). Sequentially revenue increased by 9% (Q4 2009: €36 million). The increase was mainly driven by the increased volume of shipments to Renault.
Licensing revenue was €31 million for the quarter, up by €1 million from the same quarter last year (Q1 2009: €30 million) and a decrease of 13% sequentially (Q4 2009: €35 million). Year over year licensing showed an increase in internet and wireless revenues and a decrease in external PND revenues.
WORK revenue grew year over year by €2.9 million or 33% to €12 million (Q1 2009: €9.1 million). Sequentially revenue decreased by €1.7 million (Q4 2009: €14 million) which results from a decrease in hardware sales compared to the previous quarter.
Hardware revenue for the quarter was €188 million, an increase of 25%
year on year (Q1 2009: €150 million) and a decrease compared to the last
quarter of the previous year of 58% (Q4 2009: €449 million). The
sequential decrease results from lower Consumer hardware sales as our
Consumer sales show a seasonal pattern with high sales in the fourth
quarter and lower sales in the first quarter of the year. Content and
services revenue was €80 million in the first quarter compared to €63
million in the first quarter of 2009, an increase of 27%. All business
units showed a year on year increase in content and services revenues
but the main contributor was Consumer content and services.
Sequentially, content and services revenue decreased by 6%, from €85
million in the previous quarter. Content and services revenue
represented 30% of total revenue (Q1 2009: 30%, Q4 2009: 16%).
