TomTom 2015 Annual Report Download - page 31

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MANAGEMENT BOARD REPORT
TOMTOM / ANNUAL REPORT AND ACCOUNTS 2015 / 30
FINANCIAL REVIEW
Licensing revenue in 2015 was €142 million, 27% higher
compared with last year (2014: €112 million). The increase in
revenue was driven by the renewal and increased scope of
existing contracts, addition of new customers in the B2BC
segment as well as good progress made in the Geospatial
segment.
(€ in millions, unless stated otherwise) 2015 2014 y.o.y.
change1
Revenue 142.1 111.6 27%
EBITDA242.3 30.1 41%
EBITDA margin (%) 30% 27%
EBIT 0.0 -11.4 -100%
EBIT margin (%) 0% -10%
1. Change percentages are based on non-rounded figures.
2. Licensing D&A costs mainly relate to our map asset (including acquisition-
related amortisation).
Licensing generated EBITDA of €42 million in 2015, 41% higher
compared with last year (2014: €30 million). This translates into
an EBITDA margin of 30% (2014: 27%). Licensing EBIT amounted
to nil in 2015 (2014: -€11 million). The year on year increase in
Licensing profitability is the result of a higher revenue and
improved gross margin partly offset by higher investments in
our maps.
BUSINESS OUTLOOK
We believe that the trend of growing location
awareness will provide a wealth of future
opportunities. As TomTom is a truly independent
content and service provider that has developed the
technology of the future, we are well positioned to
play an important role.
The new mapmaking platform will enable us to create
fresh and more detailed maps with high quality that
takes full advantage of the growing sensor data
offered through connected devices. These maps,
combined with our leading traffic products and online
delivery platform, give us a very competitive and
complete product portfolio.
In 2016, we will focus on growing our online maps and
traffic business. We aim to achieve this by further
broadening the customer base and with new product
introductions.