Vtech 2011 Annual Report Download - page 17

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VTech Holdings Ltd Annual Report 2011 15
US$ million
150
300
450
600
0
750
07
499.8
08
590.0
09
570.5
10
528.9
11
667.6
Revenue in Europe in Last 5 Years
VTech Holdings Ltd Annual Report 2011 15
Europe
Revenue in Europe increased by 26.2% over
the previous financial year to US$667.6
million, as all three product lines recorded
growth in sales. Europe accounted for 39.0%
of Group revenue.
Sales of TEL products in Europe rose by
26.9% to US$217.5 million, primarily driven
by higher sales to existing customers.
We continue to sell largely on an ODM
basis in the region. Despite the economic
uncertainties in some European countries, we
registered growth in most of our European
markets during the financial year. Strong
momentum was seen in Germany, where our
agreement with Deutsche Telekom is bearing
fruit. France also recorded a decent increase
in sales, as we benefited from new product
launches and the growth of our customers. In
February 2011, we introduced the world’s first
CAT-iq 2.0 certified handset, which reaffirmed
our technology leadership position.
Revenue from ELPs in Europe increased
by 13.4% to US$274.0 million. The growth
was mainly driven by standalone products,
especially the infant and Kidi lines. MobiGo
and Storio (the product name for V.Reader
in Europe) were not launched in all our
European markets during financial year 2011.
As a result, their contribution to our overall
European business was less than that in
the US.
The UK and France achieved the best
performance in Europe. Being the only
European country that launched both
MobiGo and Storio during the financial year,
the UK benefited from their contribution.
Higher sales in the UK were also due to the
continued strength of the Kidizoom line, with
the Kidizoom Plus Camera the top selling toy
for the second year in a row in the calendar
year 2010#. Despite a somewhat slow first
half, France delivered solid growth for the full
year. We made good gains in market share,
especially in the infant category, in which we
attained the number one market position#.
CMS sales in Europe were up by 52.1% over
the previous financial year to US$176.1
million. Growth was seen across our key
product categories, as existing customers
gave us more orders because of market
growth and our customer focused service.
Switching mode power supplies remained
the top category in the region, followed by
professional audio equipment and wireless
headset products. During the financial year,
we also gained new customers in the area of
home appliances.
# NPD EPoS Retail Tracking Service 2010