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p 19 / TomTom Annual Report and Accounts 2010
FINANCIAL REVIEW 20101
In 2010 TomTom delivered a solid operational and financial performance. Revenue
for the group increased to €1.52 billion compared to €1.48 billion in the previous
year. We invested in research and development and marketing at a higher level
than in the previous year and we grew the net result by 17% to €110 million.
2010 2009 20082
TomTom group1, 3 % % %
(in € millions) reported of revenue reported of revenue reported of revenue
Hardware 1,164 77% 1,175 79% 1,471 84%
Content & Services 357 23% 305 21% 277 16%
Consumer 1,158 76% 1,205 81% 1,517 87%
Automotive 179 12% 100 7% 62 4%
Licensing 131 9% 133 9% 141 8%
Business Solutions 53 3% 41 3% 29 2%
Total revenue 1,521 100% 1,480 100% 1,748 100%
Gross profit 744 49% 731 49% 871 50%
Operating expenses 554 36% 500 34% 627 36%
EBIT 190 12% 231 16% 244 14%
EBITDA 299 20% 337 23% 343 20%
Net result 110 7% 94 6% 143 8%
In 2010 we broadened our revenue mix. Revenues from content and services as a percentage of group revenue increased from
21% in 2009 to 23% in 2010. The more recently formed business units Automotive and Business Solutions grew strongly
and increased revenue to €232 million (2009: €141 million). Our gross margin was 49% resulting in a gross profit of
€744 million (2009: €731 million).
In 2009 TomTom brought its cost base into line with the changed macro economic conditions and reduced operating expenses
compared to 2008 by €127 million. In 2010 we increased our investments in our research and development (R&D) activities as
well as our marketing spend. As a result of these investments EBIT was 18% lower at €190 million (EBIT 2009: €231 million).
However our net result increased by €16 million to €110 million, an increase of 17% over 2009.
On 31 December 2010 net debt had decreased to €294 million down from €442 million at the start of the year mainly due
to strong cash flow from operations of €265 million.
REVENUE /
The composition of 2010 revenues compared to 2009 is shown in the table above. Group revenue was €1,521 million,
an increase of 3% compared to 2009.
In 2010 our revenues derived from content and services increased to €357 million a year on year increase of 17% (2009:
€305 million). The increase mainly results from increased service revenues from our Consumer business unit as well as from
higher WEBFLEET subscriptions in our Business Solutions business unit.
1 For comparative reasons we have excluded restructuring expenses (2010: €3.3 million, 2009: €10.3 million) and the related tax effects.
2 For comparative reasons the 2008 data are pro forma and we have excluded goodwill impairment charges.
3 Totals are based on non-rounded figures.