[October 20, 2017] |
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TomTom Reports Third Quarter 2017 Results
TomTom (AEX:TOM2):
Financial summary Q3 '17
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Revenue of €218 million (Q3 '16: €239 million)
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Gross margin of 65% (Q3 '16: 60%)
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EBITDA of €31 million (Q3 '16: €33 million)
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Adjusted EPS1 of €0.08 (Q3 '16: €0.05)
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Net cash position of €102 million (Q3 '16: €81 million)
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Deferred revenue position of €240 million (Q3 '16: €206 million)
Operational summary Q3 '17
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Traffic service expanded to 68 countries
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Launch of TomTom EV Service providing real-time availability for
charging points for drivers of electric vehicles
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Telematics recognised by Berg Insight as Europe's leading and most
innovative provider of fleet management solutions (for the third year
running)
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Strategic review of Consumer Sports in progress
Outlook 2017 Full year revenue outlook updated. Due
to recent reorganisation of Consumer Sports, revenue is now expected of
around €900 million2. Outlook for adjusted EPS1 of
around €0.25 is unchanged.
Key figures
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(€ in millions, unless stated otherwise)
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Q3 '17
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Q3 '16
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y.o.y. change
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YTD '17
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YTD '16
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y.o.y. change
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Automotive & Licensing
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81.1
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65.7
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23%
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242.2
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197.2
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23%
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Telematics
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39.4
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36.5
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8%
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120.1
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113.6
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6%
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Consumer
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97.2
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137.1
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-29%
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321.5
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410.9
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-22%
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REVENUE
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217.7
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239.3
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-9%
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683.8
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721.7
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-5%
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GROSS RESULT
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140.5
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144.6
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-3%
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433.5
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413.2
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5%
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Gross margin
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65%
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60%
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63%
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57%
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EBITDA
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31.2
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33.1
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-6%
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104.4
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102.3
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2%
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EBITDA margin
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14%
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14%
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15%
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14%
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OPERATING RESULT (EBIT)
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-6.0
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1.0
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-170.4
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9.4
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EBIT margin
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-3%
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0%
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-25%
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1%
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NET RESULT
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-5.3
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0.6
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-170.0
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17.5
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ADJUSTED NET RESULT
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18.8
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11.7
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60%
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46.8
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42.8
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9%
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EPS, € fully diluted
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-0.02
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0.00
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-0.72
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0.07
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Adjusted EPS1, € fully diluted
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0.08
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0.05
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59%
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0.20
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0.18
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8%
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Change percentages and totals calculated before rounding.
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This report includes the following non-GAAP measures: gross
margin, EBIT (margin), EBITDA (margin), adjusted net result,
adjusted EPS and net cash, which are further explained on page 11
of this report.
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TomTom's Chief Executive Officer, Harold Goddijn "Our
strategy is to build on our leading position in providing navigation
technologies to business customers. We are setting our priorities for
the future, strengthening support for our growing B2B products. In the
quarter, combined revenue of Automotive, Licensing and Telematics grew
by 18% year on year and the gross margin that we generate as a Group
improved from 60% to 65%. Our Consumer segment will represent less than
half of total revenue in the running year. Consumer Drive will continue
to provide a valuable platform for consumer insight and collecting
location data."
Outlook 2017 We are updating our revenue guidance for the
year. Due to recent reorganisation of Consumer Sports, we now expect to
deliver full year revenue of around €900 million. Previous full year
revenue guidance was around €925 million.
Despite lower revenue, adjusted EPS1 of around €0.25 remains
unchanged.
We now expect the level of investments (CAPEX and OPEX combined) to show
a marginal increase compared with 20163, excluding
acquisitions and restructuring charges.
Update share buyback programme On 19 September 2017, TomTom
announced the start of its share buyback programme to repurchase
ordinary TomTom shares on Euronext Amsterdam for an amount up to €50
million.
The share buyback programme will ultimately end on 29 December 2017,
unless the maximum number of 5,384,450 shares has been repurchased prior
to that date. TomTom will use the shares to cover its commitments
arising from its stock option and share plans.
The total number of shares repurchased under this programme at the end
of Q3 '17 is 663,797 shares for a total consideration of €6.1 million.4
Financial and business review Revenue for the third quarter
amounted to €218 million, 9% lower compared with the same quarter last
year (Q3 '16: €239 million). Automotive, Licensing and Telematics
jointly grew by 18% year on year, which was offset by lower Consumer
revenue. Gross margin for the quarter equalled 65% (Q3 '16: 60%). The
net result for the quarter was a loss of €5.3 million and included a
one-off restructuring charge of €15.4 million related to Consumer
Sports. Adjusted EPS1 in Q3 '17 was €0.08, compared with
€0.05 in the same quarter last year.
Automotive & Licensing
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(€ in millions)
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Q3 '17
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Q3 '16
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y.o.y. change
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YTD '17
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YTD '16
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y.o.y. change
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Automotive
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47.2
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31.3
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51%
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136.7
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95.9
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43%
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Licensing
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33.8
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34.4
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-2%
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105.5
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101.3
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4%
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Total Automotive & Licensing revenue
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81.1
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65.7
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23%
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242.2
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197.2
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23%
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Change percentages and totals calculated before rounding.
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Automotive & Licensing combined revenue in the quarter was €81 million
(Q3 '16: €66 million). Automotive generated revenue of €47 million in
the quarter, representing a 51% increase year on year. This increase
mainly came from the ramp-up of a new contract that went live last year.
Licensing revenue in Q3 '17 remained flat at €34 million compared with
the same quarter last year.
In the quarter, we announced that Daimler selected TomTom Maps for its
Mercedes infotainment platform, in a range of the automaker's A, C, B
and E-class vehicles for the North American market. The new contract
marks the strengthening of the relationship with Daimler, after the
announcement of the TomTom Traffic deal for Europe, North America and
Africa in March 2017.
During this year's IAA Frankfurt, we announced that our products are now
available in the Peugeot 5008 SUV, through the new generation of Peugeot
i-Cockpit®, the in-vehicle infotainment and control system with TomTom
navigation.
We also announced at the IAA Frankfurt that we are working with Renault
on the SYMBIOZ autonomous driving programme by providing the TomTom HD
Map with RoadDNA, as well as engineering support and other products and
services.
In the quarter, TomTom EV Service was launched which has been developed
to assist drivers in making informed decisions about when and where to
charge their vehicles. The real-time availability information is sourced
from market leaders in EV charging locations and then integrated with
the TomTom Map. The service will initially be available in Europe, with
a geo-expansion planned to North America early next year. After this
expansion, TomTom EV Service will list 35,000+ charging stations with
real-time availability information, globally.
Our Traffic service is now available in 68 countries, after the
expansion to four new countries - Egypt, Morocco, Macau and Iceland.
We have also announced that TomTom Traffic is increasingly providing
Lane-Level traffic information, a feature that is critical for
Autonomous Driving. Already able to detect traffic on different lanes at
junctions, TomTom Traffic can now also differentiate between traffic
flow on High Occupancy Vehicles (HOV) lanes and regular lanes.
Licensing announced collaborations with Sony, TripAdvisor and Michelin.
TomTom Online Routing API is providing advanced routing technology to
Sony, which is currently beta testing a biking navigation device (Future
Lab Program N) for users in the San Francisco Bay Area. By leveraging on
the geocoding capabilities of the TomTom Online Search API, TripAdvisor
will be able to access TomTom's precise global address data, capable of
handling millions of requests daily. TomTom Online APIs and map data
will power Michelin's new mobile application specifically tailored for
oversized vehicles called Michelin RoadConnect. The new service will
employ our location technology to enable truck drivers to identify
suitable routes and improve mobility.
Telematics
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(€ in millions, unless stated otherwise)
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Q3 '17
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Q3 '16
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y.o.y. change
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YTD '17
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YTD '16
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y.o.y. change1
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Subscriptions
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31.6
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29.4
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7%
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93.6
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87.5
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7%
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Hardware and other services²
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7.8
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7.1
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10%
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26.5
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26.0
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2%
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Total Telematics revenue
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39.4
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36.5
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8%
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120.1
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113.6
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6%
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Monthly revenue per subscription (€)
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13.6
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14.6
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-7%
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Subscriber installed base (# in thousands)
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785
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671
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17%
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1 Change percentages and totals calculated
before rounding.
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2 Other services revenue comprises
installation services and separately purchased traffic service
and/or map content.
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Telematics revenue for the quarter was €39 million, 8% higher compared
with the same quarter last year. The recurring subscription revenue for
the quarter increased by 7% year on year to €32 million (Q3 '16: €29
million). Hardware and other services revenue increased by 10% year on
year in the third quarter mainly due to a one-off service revenue.
Monthly revenue per subscription decreased by 7% year on year, mainly
due to a mix effect caused by growing aftermarket connected car volumes,
which are priced at lower levels compared with the traditional fleet
management services.
At the end of Q3 '17, Telematics reached 785,000 fleet management and
connected car subscriptions. This represents a 17% year on year
increase, from 671,000 subscriptions at the end of Q3 '16.
We continue to invest in our main Fleet Management Solution WEBFLEET. In
the quarter, we provided access to all of our customers to the open beta
version of the New WEBFLEET 2018, offering a complete new user interface.
In September, market research firm Berg Insight recognised TomTom
Telematics as Europe's leading provider of fleet management solutions,
for the third year running. According to its "Fleet Management in
Europe" report, Telematics is currently twice as large as the second
player.
Continuing on the Connected Car strategy, in Q3, we worked with
LeasePlan on new Connected Car apps and gave them access to our
cloud-based TomTom Telematics Services Platform.
Consumer
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(€ in millions)
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Q3 '17
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Q3 '16
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y.o.y. change
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YTD '17
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YTD '16
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y.o.y. change
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Consumer products
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88.4
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126.2
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-30%
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286.8
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361.4
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-21%
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Automotive hardware
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8.8
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10.9
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-20%
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34.7
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49.5
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-30%
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Total Consumer revenue
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97.2
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137.1
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-29%
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321.5
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410.9
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-22%
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Change percentages and totals calculated before rounding.
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Consumer revenue for the quarter decreased by 29% year on year to €97
million (Q3 '16: €137 million), reflecting a decrease in both Consumer
products as well as Automotive hardware revenue.
As communicated earlier this year, the wearables market has fallen short
of expectations. In line with the previously announced strategic review,
our Sports business has been reduced in size. We are aligning our cost
base with the current market developments while we continue to sell
sports products and support our customers. We reported a restructuring
charge of €15.4 million in the quarter and are further evaluating our
strategic options for Consumer Sports.
We will continue to develop portable navigation devices, as the Drive
business will continue to provide a valuable platform for consumer
insight and collecting location data.
In the quarter, TomTom BRIDGE Hub was launched, enabling customers and
partners in various industries - transportation, emergency, logistics
and utilities - to connect with regular smartphones and tablets (BYOD),
rugged professional devices or even HDMI displays, to create enhanced
connected mobility solutions.
Data, software & services and Hardware revenue split
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(€ in millions)
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Q3 '17
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Q3 '16
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y.o.y. change
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YTD '17
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YTD '16
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y.o.y. change
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Data, software & services
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138.9
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120.9
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15%
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407.7
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358.5
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14%
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Hardware
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78.8
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118.4
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-33%
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276.1
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363.2
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-24%
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Total revenue
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217.7
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239.3
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-9%
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683.8
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721.7
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-5%
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Change percentages and totals calculated before rounding.
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Data, software & services revenue in the quarter was €139 million, 15%
higher compared with €121 million in Q3 '16, mainly due to increase in
Automotive revenue. Data, software & services accounted for 64% of the
revenue in Q3 '17 compared with 51% in Q3 '16. Hardware revenue for the
quarter was €79 million, 33% lower compared with €118 million in Q3 '16.
Gross result Our gross result decreased by 3% to €141
million in the quarter compared with €145 million in Q3 '16. Cost of
sales in Q3 '17 included a one-off restructuring charge of €3.6 million
related to the announced reorganisation in Consumer Sports.
The gross margin for the quarter was 65%, five percentage points higher
compared with 60% in Q3 '16, reflecting the shift of revenue mix towards
higher margin data, software & services revenue.
Operating expenses Total operating expenses for the quarter
were €147 million, €2.8 million higher compared with €144 million in the
same quarter last year. Operating expenses included a one-off
restructuring charge of €11.8 million related to the announced
reorganisation in Consumer Sports. Excluding this restructuring charge,
operating expenses declined by €9.0 million year on year mainly due to
lower marketing expenditure in the quarter.
FX sensitivity
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(€ in millions, unless stated otherwise)
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Q3 '17 actual
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Q3 '17 recalculated at Q3 '16 FX
rates1
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YTD '17 actual
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YTD '17 recalculated at YTD '16 FX
rates1
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Revenue
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217.7
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220.7
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683.8
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687.8
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Gross result
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140.5
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140.7
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433.5
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437.8
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Gross margin
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65%
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64%
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63%
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64%
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EBIT (YTD excl. impairment charge)
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-6.0
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-7.1
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-1.7
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0.9
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EBIT margin (YTD excl. impairment charge)
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-3%
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-3%
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0%
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0%
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FX RATES (IN €)
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Q3 '17
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Q3 '16
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YTD '17
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YTD '16
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US dollar
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1.17
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1.11
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1.11
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1.11
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GB pound
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0.90
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0.84
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0.87
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0.79
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¹The Q3 '17/YTD '17 income and expense in US dollar and GB
pound have been converted to euro using Q3 '16 / YTD '16
average exchange rates. All other foreign currencies have not been
converted.
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Depreciation, amortisation and impairment
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(€ in millions)
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Q3 '17
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Q3 '16
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y.o.y. change
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YTD '17
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YTD '16
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y.o.y. change
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Cost of sales
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4.3
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1.9
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129%
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10.3
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6.2
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66%
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Research and development
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3.0
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3.4
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-10%
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9.2
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9.1
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2%
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Amortisation of technology & databases
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24.4
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22.6
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8%
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71.2
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64.3
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11%
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Marketing
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0.1
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0.1
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11%
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0.3
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0.2
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7%
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Selling, general and administration
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5.4
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4.3
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26%
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15.0
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13.1
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15%
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Impairment charge
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|
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168.7
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Total
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37.2
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32.3
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16%
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274.7
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93.0
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Of which acquisition-related
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13.8
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13.7
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1%
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210.3
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41.1
|
|
|
|
Change percentages and totals calculated before rounding.
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Total depreciation and amortisation was €37 million in Q3 '17, compared
with €32 million in the same quarter last year. Acquisition-related
amortisation remained flat at €14 million in the quarter (Q3 '16: €14
million).
Financial income and expenses Financial income and
expenses, excluding results of associates, amounted to an expense of
€0.4 million in Q3 '17 compared to a gain of €0.1 million in Q3 '16.
Income tax The net income tax for the quarter was a gain of
€0.8 million versus a net income tax expense of €0.6 million in the same
quarter last year.
Net result and adjusted EPS
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(€ in millions, unless stated otherwise)
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Q3 '17
|
|
Q3 '16
|
|
y.o.y. change
|
|
YTD '17
|
|
YTD '16
|
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y.o.y. change
|
|
|
|
|
|
|
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|
|
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Net result
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-5.3
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0.6
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-170.0
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17.5
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Net result attributed to equity holders
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-5.3
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0.6
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-169.8
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17.5
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Remeasurement of deferred tax liability
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-7.6
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Impairment charge
|
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|
|
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168.7
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Acquisition-related expenses
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15.3
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13.7
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11%
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45.8
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41.1
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11%
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Restructuring charge
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15.4
|
|
|
|
|
|
15.4
|
|
|
|
|
|
Tax effect of adjustments
|
|
-6.6
|
|
-2.6
|
|
155%
|
|
-13.3
|
|
-8.2
|
|
62%
|
|
Adjusted net result
|
|
18.8
|
|
11.7
|
|
60%
|
|
46.8
|
|
42.8
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS, € fully diluted
|
|
0.08
|
|
0.05
|
|
59%
|
|
0.20
|
|
0.18
|
|
8%
|
|
Change percentages and totals calculated before rounding.
|
|
The net result for the quarter was a loss of €5.3 million compared with
a gain of €0.6 million in Q3 '16. The adjusted net result for the
quarter was a gain of €19 million compared with €12 million in Q3 '16.
Adjusted EPS for the quarter was €0.08, compared with €0.05 in the same
quarter last year.
Balance sheet At the end of the quarter, trade receivables
plus other receivables totalled €227 million compared with €219 million
at the end of Q3 '16. The inventory level at the end of the quarter was
€53 million, compared with €61 million at the end of the same quarter
last year. Cash and cash equivalents at the end of the quarter were €105
million versus €129 million at the end of Q3 '16.
Current liabilities excluding deferred revenue were €271 million
compared with €300 million at the end of Q3 '16.
Deferred revenue was €240 million at the end of Q3 '17, compared with
€206 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 September 2017, we reported a net cash position of €102 million
(Q3 '16: net cash of €81 million). Net cash is the sum of the cash and
cash equivalents at the end of the period (€105 million) minus the
nominal amount of the borrowings (€3.0 million).
Cash flow The cash flow from operating activities for the
quarter was €48 million compared with €54 million in Q3 '16, a decrease
of 10%. This year on year decrease in operating cash flow was mainly
driven by lower cash flows received from working capital movements
versus prior year.
The cash flow used in investing activities during the quarter decreased
by €3.2 million year on year to €29 million (Q3 '16: €32 million). The
vast majority of our investments related to map content and various
technology platforms to support growth in Automotive and Licensing.
CAPEX (excluding acquisitions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(€ in millions)
|
|
Q3 '17
|
|
Q3 '16
|
|
y.o.y. change
|
|
YTD '17
|
|
YTD '16
|
|
y.o.y. change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Map content
|
|
8.6
|
|
7.9
|
|
9%
|
|
22.6
|
|
18.6
|
|
21%
|
|
Mapmaking platform
|
|
7.8
|
|
8.7
|
|
-10%
|
|
23.9
|
|
24.2
|
|
-1%
|
|
Applications
|
|
3.6
|
|
3.6
|
|
-2%
|
|
11.6
|
|
10.6
|
|
9%
|
|
Customer specific
|
|
5.0
|
|
5.3
|
|
-6%
|
|
16.0
|
|
15.2
|
|
5%
|
|
Telematics
|
|
2.1
|
|
2.6
|
|
-20%
|
|
9.9
|
|
7.4
|
|
34%
|
|
Other
|
|
1.8
|
|
3.8
|
|
-53%
|
|
6.8
|
|
15.1
|
|
-55%
|
|
Total
|
|
28.8
|
|
31.9
|
|
-10%
|
|
90.8
|
|
91.2
|
|
0%
|
|
Change percentages and totals calculated before rounding.
|
|
The cash flow from financing activities was an inflow of €0.9 million,
reflecting cash inflow from the exercises of employee stock options. In
the quarter, 183 thousand options (Q3 '16: 340 thousand options) were
exercised.
- END -
Consolidated condensed statement of income
|
|
|
|
|
|
|
|
|
|
(€ in thousands)
|
|
Q3 '17 Unaudited
|
|
Q3 '16 Unaudited
|
|
YTD '17 Unaudited
|
|
YTD '16 Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
217,666
|
|
239,331
|
|
683,819
|
|
721,711
|
|
Cost of sales
|
|
77,149
|
|
94,690
|
|
250,323
|
|
308,507
|
|
Gross result
|
|
140,517
|
|
144,641
|
|
433,496
|
|
413,204
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
51,636
|
|
50,680
|
|
155,401
|
|
140,888
|
|
Amortisation of technology and databases
|
|
24,429
|
|
22,571
|
|
71,231
|
|
64,304
|
|
Marketing expenses
|
|
11,633
|
|
19,159
|
|
47,656
|
|
55,762
|
|
Selling, general and administrative expenses
|
|
58,827
|
|
51,278
|
|
160,883
|
|
142,858
|
|
Impairment charge
|
|
|
|
|
|
168,687
|
|
|
|
Total operating expenses
|
|
146,525
|
|
143,688
|
|
603,858
|
|
403,812
|
|
|
|
|
|
|
|
|
|
|
|
Operating result
|
|
-6,008
|
|
953
|
|
-170,362
|
|
9,392
|
|
|
|
|
|
|
|
|
|
|
|
Interest result
|
|
-247
|
|
-404
|
|
-740
|
|
-1,086
|
|
Other financial result
|
|
-115
|
|
513
|
|
1,741
|
|
991
|
|
Result of associates
|
|
203
|
|
97
|
|
556
|
|
558
|
|
Result before tax
|
|
-6,167
|
|
1,159
|
|
-168,805
|
|
9,855
|
|
|
|
|
|
|
|
|
|
|
|
Income tax gain/(expense)
|
|
821
|
|
-594
|
|
-1,153
|
|
7,663
|
|
Net result
|
|
-5,346
|
|
565
|
|
-169,958
|
|
17,518
|
|
|
|
|
|
|
|
|
|
|
|
Net result attributable to:
|
|
|
|
|
|
|
|
|
|
Equity holders of the parent
|
|
-5,285
|
|
595
|
|
-169,797
|
|
17,453
|
|
Non-controlling interests
|
|
-61
|
|
-30
|
|
-161
|
|
65
|
|
Net result
|
|
-5,346
|
|
565
|
|
-169,958
|
|
17,518
|
|
|
|
|
|
|
|
|
|
|
|
Basic number of shares (in thousands)
|
|
235,227
|
|
232,424
|
|
234,246
|
|
231,413
|
|
Diluted number of shares (in thousands)
|
|
237,772
|
|
235,265
|
|
237,134
|
|
234,898
|
|
|
|
|
|
|
|
|
|
|
|
EPS, € basic
|
|
-0.02
|
|
0.00
|
|
-0.72
|
|
0.08
|
|
EPS, € diluted5
|
|
-0.02
|
|
0.00
|
|
-0.72
|
|
0.07
|
|
Consolidated condensed balance sheet
|
|
|
|
|
|
(€ in thousands)
|
|
30 September 2017 Unaudited
|
|
31 December 2016 Audited
|
|
|
|
|
|
|
|
Goodwill
|
|
254,525
|
|
400,318
|
|
Other intangible assets
|
|
787,726
|
|
795,771
|
|
Property, plant and equipment
|
|
35,539
|
|
40,398
|
|
Deferred tax assets
|
|
9,369
|
|
12,046
|
|
Investment in associates
|
|
4,184
|
|
3,941
|
|
Total non-current assets
|
|
1,091,343
|
|
1,252,474
|
|
|
|
-
|
|
-
|
|
Inventories
|
|
53,141
|
|
54,078
|
|
Trade receivables
|
|
164,467
|
|
132,424
|
|
Other receivables and prepayments
|
|
62,383
|
|
46,115
|
|
Other financial assets
|
|
|
|
1,210
|
|
Cash and cash equivalents
|
|
105,220
|
|
142,527
|
|
Total current assets
|
|
385,211
|
|
376,354
|
|
|
|
-
|
|
-
|
|
Total assets
|
|
1,476,554
|
|
1,628,828
|
|
|
|
-
|
|
-
|
|
Share capital
|
|
47,064
|
|
46,577
|
|
Share premium
|
|
1,068,482
|
|
1,051,890
|
|
Treasury shares
|
|
-6,116
|
|
|
|
Other reserves
|
|
269,207
|
|
234,502
|
|
Accumulated deficit
|
|
-548,528
|
|
-338,138
|
|
Equity attributable to equity holders of the parent
|
|
830,109
|
|
994,831
|
|
Non-controlling interests
|
|
1,533
|
|
1,906
|
|
Total equity
|
|
831,642
|
|
996,737
|
|
|
|
-
|
|
-
|
|
Borrowings
|
|
2,835
|
|
9,586
|
|
Deferred tax liability
|
|
93,305
|
|
97,282
|
|
Provisions
|
|
37,160
|
|
54,406
|
|
Deferred revenue
|
|
132,908
|
|
107,151
|
|
Total non-current liabilities
|
|
266,208
|
|
268,425
|
|
|
|
-
|
|
-
|
|
Trade payables
|
|
64,510
|
|
76,630
|
|
Income taxes
|
|
1,730
|
|
1,289
|
|
Other taxes and social security
|
|
10,164
|
|
9,383
|
|
Provisions
|
|
52,867
|
|
36,410
|
|
Deferred revenue
|
|
107,303
|
|
97,256
|
|
Accruals and other liabilities
|
|
142,130
|
|
142,698
|
|
Total current liabilities
|
|
378,704
|
|
363,666
|
|
|
|
-
|
|
-
|
|
Total equity and liabilities
|
|
1,476,554
|
|
1,628,828
|
|
Consolidated condensed statements of cash flows
|
|
|
|
|
|
|
|
|
|
(€ in thousands)
|
|
Q3 '17 Unaudited
|
|
Q3 '16 Unaudited
|
|
YTD '17 Unaudited
|
|
YTD '16 Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Operating result
|
|
-6,008
|
|
953
|
|
-170,362
|
|
9,392
|
|
Financial (losses)
|
|
-3,315
|
|
-1,960
|
|
-2,918
|
|
-1,559
|
|
Depreciation, amortisation and impairment
|
|
37,177
|
|
32,140
|
|
274,727
|
|
92,951
|
|
Change in provisions
|
|
11,475
|
|
-2,422
|
|
3,205
|
|
-834
|
|
Equity-settled stock compensation expenses
|
|
2,346
|
|
816
|
|
6,748
|
|
2,750
|
|
Changes in working capital:
|
|
|
|
|
|
|
|
|
|
Change in inventories
|
|
212
|
|
-10,535
|
|
-290
|
|
-12,647
|
|
Change in receivables and prepayments
|
|
-11,657
|
|
19,192
|
|
-45,172
|
|
-27,880
|
|
Change in liabilities (excluding provisions)6
|
|
21,149
|
|
22,571
|
|
17,849
|
|
17,024
|
|
Cash generated from operations
|
|
51,379
|
|
60,755
|
|
83,787
|
|
79,197
|
|
|
|
|
|
|
|
|
|
|
|
Interest received
|
|
48
|
|
42
|
|
199
|
|
128
|
|
Interest (paid)
|
|
-214
|
|
-364
|
|
-690
|
|
-966
|
|
Corporate income taxes (paid)
|
|
-3,082
|
|
-6,695
|
|
-8,313
|
|
-9,716
|
|
Cash flows from operating activities
|
|
48,131
|
|
53,738
|
|
74,983
|
|
68,643
|
|
|
|
|
|
|
|
|
|
|
|
Investments in intangible assets
|
|
-25,313
|
|
-27,489
|
|
-79,986
|
|
-74,471
|
|
Investments in property, plant and equipment
|
|
-3,457
|
|
-4,409
|
|
-10,815
|
|
-16,702
|
|
Acquisition of subsidiaries and other businesses
|
|
|
|
|
|
-24,493
|
|
-2,331
|
|
Dividends received
|
|
106
|
|
50
|
|
106
|
|
130
|
|
Cash flows from investing activities
|
|
-28,664
|
|
-31,848
|
|
-115,188
|
|
-93,374
|
|
|
|
|
|
|
|
|
|
|
|
Change in utilisation of credit facility
|
|
|
|
-30,000
|
|
-7,000
|
|
3,000
|
|
Repayment of borrowings
|
|
|
|
|
|
-708
|
|
-4,287
|
|
Change in non-controlling interest
|
|
|
|
-98
|
|
-123
|
|
-98
|
|
Dividends paid
|
|
|
|
-11
|
|
|
|
-138
|
|
Proceeds on issue of ordinary shares
|
|
860
|
|
1,255
|
|
11,840
|
|
8,923
|
|
Cash flows from financing activities
|
|
860
|
|
-28,854
|
|
4,009
|
|
7,400
|
|
|
|
|
|
|
|
|
|
|
|
Net increase / (decrease) in cash and cash equivalents
|
|
20,327
|
|
-6,964
|
|
-36,196
|
|
-17,331
|
|
Cash and cash equivalents at beginning of period
|
|
85,041
|
|
136,391
|
|
142,527
|
|
147,565
|
|
Exchange rate changes on cash balances held in foreign
currencies
|
|
-148
|
|
-165
|
|
-1,111
|
|
-972
|
|
Cash and cash equivalents at end of period
|
|
105,220
|
|
129,262
|
|
105,220
|
|
129,262
|
|
Accounting policies - basis of accounting The condensed
consolidated financial information for the three-month and nine-month
period ended 30 September 2017 with related comparative information has
been prepared using accounting policies which are based on International
Financial Reporting Standards (IFRS) as endorsed by the EU. Accounting
policies and methods of computation followed in the condensed
consolidated financial information, for the period ended 30 September
2017, are the same as those followed in the Financial Statements for the
year ended 31 December 2016. Further disclosures as required under IFRS
for a complete set of consolidated financial statements are not included
in the condensed consolidated financial information. Unless otherwise
indicated, the condensed consolidated financial information in this
press release has not been audited nor reviewed.
Non-GAAP measures The financial information in this report
includes measures, which are not defined by generally accepted
accounting principles (GAAP) such as IFRS. We believe this information,
along with comparable GAAP measurements, gives insight to investors
because it provides a basis for evaluating our operational performance.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information presented in compliance
with GAAP. Wherever appropriate and practical, we provide
reconciliations to relevant GAAP measures.
Gross margin is calculated as gross result divided by revenue EBIT
is equal to our operating result EBIT margin is calculated
as operating result divided by revenue EBITDA is equal to
our operating result plus depreciation, amortisation and impairment
charges EBITDA margin is calculated as operating result plus
depreciation, amortisation and impairment charges divided by revenue Adjusted
net result is calculated as net result attributed to equity holders
adjusted for acquisition-related expenses and gains, impairments and
material restructuring costs on a post-tax basis Adjusted EPS
is calculated as adjusted net result divided by the weighted average
number of diluted shares over the period Net cash is defined
as our cash and cash equivalents minus the nominal value of our
outstanding borrowings
Audio webcast third quarter 2017 results The information
for our audio webcast is as follows: Date and time: 20 October 2017
at 14:00 CEST corporate.tomtom.com/presentations.cfm
TomTom is listed at NYSE Euronext Amsterdam in the Netherlands ISIN:
NL0000387058 / Symbol: TOM2
About TomTom TomTom (TOM2) empowers movement. Every day
millions of people around the world depend on TomTom to make smarter
decisions. We design and develop innovative products that make it easy
for people to keep moving towards their goals. Our map-based components
include map content, online map-based services, traffic, and navigation
software. Our consumer products include PNDs, navigation apps, and
sports watches. Our main business products are custom in-dash navigation
systems and a fleet management system, which is offered to fleet owners
as an online service with integrated in-vehicle cellular devices. Our
business consists of four customer facing business units: Automotive,
Licensing, Telematics and Consumer. Founded in 1991 and headquartered in
Amsterdam, we have more than 4,700 employees worldwide. For further
information, please visit www.tomtom.com.
Forward-looking statements/Important notice This
document contains certain forward-looking statements with respect to the
financial position and results of TomTom's activities. We have based
these forward-looking statements on our current expectations and
projections about future events, including numerous assumptions
regarding our present and future business strategies, operations and the
environment in which we will operate in the future. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in
the forward-looking statements, and you should not place undue reliance
on them. Many of these risks and uncertainties relate to factors that
are beyond TomTom's ability to control or estimate precisely, such as
levels of customer spending in major economies, changes in consumer
preferences, the performance of the financial markets, the levels of
marketing and promotional expenditures by TomTom and its competitors,
costs of raw materials, employee costs, exchange-rate and interest-rate
fluctuations, changes in tax rates, changes in law, acquisitions or
disposals, the rate of technological changes, political developments in
countries where the company operates and the risk of a downturn in the
market. Statements regarding market share, including the company's
competitive position, contained in this document are based on outside
sources such as specialised research institutes, industry and dealer
panels in combination with management estimates.
The forward-looking statements contained herein speak only as of the
date they are made. We do not assume any obligation to update any public
information or forward-looking statement in this document to reflect
events or circumstances after the date of this document, except as may
be required by applicable laws.
This document contains inside information as meant in clause 7 of the
Market Abuse Regulation.
1 Earnings per fully diluted share count adjusted for
acquisition-related expenses & gains, impairments and material
restructuring costs on a post-tax basis. 2 Previous full
year revenue guidance was around €925 million. 3 In
2016, CAPEX was €118 million and OPEX was €557 million. Year to date in
2017, we spent €24.5 million on acquisition-related CAPEX and €15.4
million on restructuring charges. 4 The cash outflow
related to this share buyback programme will occur in the fourth quarter
of this year. 5 In 2017, no additional shares from
assumed conversion are taken into account as the effect would be
anti-dilutive. 6 Includes movements in the non-current
portion of deferred revenue presented under Non-Current liabilities.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171019006456/en/
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