TomTom reported revenue from its Consumer segment declined three times faster in the third quarter than they did in the second due to faster than expected declines in the sale of personal navigation devices (PND) in Europe.
Preliminary figures released Thursday by the Amsterdam, Netherlands-based company show Consumer sales fell 15 percent year over year in the the third quarter ended September 30, compared with the 5 percent decline reported for the second quarter. The decline in the second quarter came despite double-digit percentage growth in sports-activity related sales. Sports watch activations nearly doubled year over year, and TomTom’s MySports activity tracking service reached 1 million users in the quarter.
TomTom said it will publish its full results for the third quarter results October 21.
“The European PND market is experiencing a faster rate of unit decline compared with what we have seen in the first half of the year and we now expect this market in units to be down by about -20 percent for the year as a whole,” the company said. “The rate of unit decline of the North American PND market is broadly in line with what we have seen in the first half of the year and for the year as a whole is expected to be around -23 percent.”
The Automotive, Licensing and Telematics businesses are developing in line with expectations.
TomTom said that while its Hardware revenues are lower than planned because of weak PND sales, content and service revenues grew, which resulted in a strong gross margin.
TomTom now expect full-year group revenue of around €980 million, down from previous guidance of around €1.05 billion. Outlook for adjusted EPS of around €0.23 is unchanged.