“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.”
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
|(€ in millions)||Q3 '17||Q3 '16||
|YTD '17||YTD '16||
|Total Automotive & Licensing revenue||81.1||65.7||23%||242.2||197.2||23%|
Change percentages and totals calculated before rounding.