Tele Atlas reports second quarter revenue of ¤72.8 million
21% increase over same quarter last year
's-Hertogenbosch, The Netherlands, July 31, 2007 - Tele Atlas NV
(FSE: TA6, EUNV: TA), a leading global provider of digital maps and
dynamic content for navigation and location based solutions, today
reported results for the second quarter of 2007.
Second Quarter Highlights:
* Revenues increased 21% over the same period last year to ¤72.8
million (Q2 2006: ¤60.0 million).
* Adjusted EBITDA increased 67% over the same period in the prior
year to ¤12.2 million (Q2 2006: ¤7.3 million).
* Net loss of ¤1.2 million compared to a profit of ¤4.5 million
during the same quarter last year (Q2 2006 included a tax benefit
of ¤10.7 million).
* Personal navigation revenues increased 52% over the same quarter
during prior year, showing continued strong growth in this market
segment.
* On July 23, 2007 TomTom and Tele Atlas announced that TomTom
intends to make a cash offer of ¤ 21.25 per ordinary share for
Tele Atlas N.V. We refer to the joint press release of that date
for more information.
Key Figures
+-------------------------------------------------------------------+
| In millions of euros, except | Q2 2007 | Q2 2006 | % Change |
| otherwise noted | | | |
|------------------------------------+---------+---------+----------|
| Revenues | 72.8 | 60.0 | 21% |
|------------------------------------+---------+---------+----------|
| Adjusted EBITDA[1] | 12.2 | 7.3 | 67% |
|------------------------------------+---------+---------+----------|
| Operating result (EBIT) | (1.5) | (7.7) | 81% |
|------------------------------------+---------+---------+----------|
| Net result | (1.2) | 4.5 | (127%) |
|------------------------------------+---------+---------+----------|
| Average number of employees | 1,656 | 1,442 | 15% |
|------------------------------------+---------+---------+----------|
| Earnings per share (in ¤) | (0.02) | 0.05 | (140%) |
+-------------------------------------------------------------------+
[1] Adjusted EBITDA is the operating result before capitalization,
depreciation and amortization and before costs related to Share-based
Payments.
Alain De Taeye, Chief Executive Officer, said: "The sustained strong
growth across personal navigation and automotive markets reflects the
continuing emergence of a true mass market for digital maps in which
tens of millions of users will rely on Tele Atlas data in their daily
lives. Our introduction during the quarter of new features such as 3D
citymaps capabilities has raised the map's usability to an even
higher level.
Financial Highlights
Beginning with fiscal 2007, certain changes have been made to
segmentation and presentation in our reporting. These changes are
further clarified in the notes to these interim financial reports in
this release. Comparative information for 2006 has been restated to
reflect these changes retroactively. Restated key quarterly
financials by operating segment are summarized in the annex to this
release.
Revenues
Tele Atlas' revenues for the second quarter of 2007 increased by 21%
to ¤72.8 million compared to ¤60.0 million in the same period last
year. Revenues grew 24% after adjusting for a ¤1.3 million effect of
currency exchange rate changes. Revenues for the first six months
increased by 17% (21% after adjustment for exchange rate effects) to
¤136.8 million, compared to ¤ 116.5 million in the previous year.
EMEA (Europe, Middle East & Africa) revenues for the quarter
increased by 21% over the prior year to ¤53.1 million, mainly as a
result of growth in the personal navigation segment. Americas
revenues for the second quarter increased 12% from the prior year to
¤16.7 million, primarily due to increases in the personal navigation
and Internet segments. Americas revenues grew 21% after adjusting for
the effect of currency exchange rates changes. Revenues for the
quarter in the Asia Pacific (APAC) area increased by 158% over the
prior year to ¤2.9 million.
Revenues Per Segment[1]
(In thousands of euros)
+-------------------------------------------------------------------------------------------+
| | 3 months ended | 3 months ended |
| | June 30, 2007 | June 30, 2006 |
|---------------+-------------------------------------+-------------------------------------|
| | EMEA | Americas | APAC | Total | EMEA | Americas | APAC | Total |
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Automotive | | | | | | | | |
|navigation | 8,229| 2,413| 541| 11,183| 9,571| 2,801| 676| 13,048|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Data products | | | | | | | | |
|navigation | 6,042| 168| 77| 6,287| 6,311| 51| 8| 6,370|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Personal | | | | | | | | |
|navigation | 32,946| 5,987| 7| 38,940| 22,999| 2,542| 22| 25,563|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Enterprise and | | | | | | | | |
|government | 2,882| 8,122| -| 11,004| 2,755| 8,826| 435| 12,016|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Other segments | 2,319| 2,345| 724| 5,388| 1,855| 1,128| -| 2,983|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
| | 52,418| 19,035| 1,349| 72,802| 43,491| 15,348| 1,141| 59,980|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Intra-company | | | | | | | | |
|Commissions | 722| (2,314)| 1,592| -| 463| (463)| -| -|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Net Revenue | | | | | | | | |
|Total | 53,140| 16,721| 2,941| 72,802| 43,954| 14,885| 1,141| 59,980|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
| | | | | | | | | |
|---------------+-------------------------------------+-------------------------------------|
| | 6 months ended | 6 months ended |
| | June 30, 2007 | June 30, 2006 |
|---------------+-------------------------------------+-------------------------------------|
| | EMEA | Americas | APAC | Total | EMEA | Americas | APAC | Total |
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Automotive | | | | | | | | |
|navigation | 16,499| 5,187| 1,026| 22,712| 20,054| 4,434| 1,132| 25,620|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Data products | | | | | | | | |
|navigation | 10,290| 214| 119| 10,623| 12,071| 152| 8| 12,231|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Personal | | | | | | | | |
|navigation | 60,176| 10,989| 22| 71,187| 41,558| 4,461| 163| 46,182|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Enterprise and | | | | | | | | |
|government | 4,939| 17,493| -| 22,432| 5,449| 19,390| 475| 25,314|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Other segments | 4,376| 4,777| 724| 9,877| 3,468| 3,680| -| 7,148|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
| | 96,280| 38,660| 1,891| 136,831| 82,600| 32,117| 1,778| 116,495|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Intra-company | | | | | | | | |
|Commissions | 1,263| (3,902)| 2,639| -| 559| (570)| 11| -|
|---------------+--------+----------+-------+---------+--------+----------+-------+---------|
|Net Revenue | | | | | | | | |
|Total | 97,543| 34,758| 4,530| 136,831| 83,159| 31,547| 1,789| 116,495|
+-------------------------------------------------------------------------------------------+
[1] Segment revenues reflect revenues by database area.
Intra-company commissions are for customer and technical support
between areas.
Personal Navigation:
During the second quarter of 2007, worldwide revenues in the personal
navigation segment increased by 52% over the same period in the prior
year to ¤38.9 million. These 2007 second quarter revenues represent
map license fees from the sale of 3.0 million personal navigation
units as compared to 1.5 million units in the same quarter of the
previous year. EMEA personal navigation revenues for the quarter were
¤32.9 million, an increase of 43% over the same period last year.
Americas personal navigation revenues were ¤6.0 million, an increase
of 136% over the same period last year (153% increase excluding
exchange rate effect). The difference between personal navigation
unit and revenue growth rates resulted from a movement towards lower
cost personal navigation systems in the quarter coupled with product
price reductions that were effective during the quarter. Revenues for
the first 6 months in the personal navigation segment increased by
54% to ¤71.2 million.
Automotive Navigation:
As previously announced, Tele Atlas is phasing out its compilation
and conversion activities. The impact of this phase out during the
second quarter was a reduction of approximately ¤1.1 million in
compilation and conversion revenues. This reduction was offset by a
similar reduction in cost of revenues and operating expenses.
Worldwide revenues in the automotive navigation segment decreased 14%
to ¤11.2 million. Worldwide, the number of map licenses sold by Tele
Atlas in the automotive segment grew to just under 0.4 million units,
an 18% increase compared to the same period last year. EMEA revenue
in this segment was ¤8.2 million, a 14% decrease from the same period
in the prior year, which resulted primarily from the elimination of
compilation and conversion revenues discussed above. Americas
automotive navigation revenue decreased by 14% to ¤2.4 million due to
changes in exchange rates and a reduction in inventory levels at
DENSO due to the change in their production location from Japan to
the U.S. After adjustment for the effects of changes in exchange
rates, the decrease in Americas automotive revenue was 7%.
Revenues for the first 6 months in the automotive navigation segment
decreased by 11% to ¤22.7 million.
Enterprise and Government:
Second quarter revenue from the enterprise and government sectors
(business-to-business) decreased 8% to ¤11.0 million from ¤12.0
million during the same period last year, mainly as a result of
changes in exchange rates. Americas revenue in this segment decreased
by 8% to ¤8.1 million compared to last year (1% decrease excluding
exchange rate effects). EMEA revenue in this segment was ¤2.9 million
compared to ¤2.8 million in the same quarter last year.
Revenues for the first 6 months in the enterprise and government
segment decreased by 11% to ¤22.4 million largely due to exchange
rate effects.
Data Products Navigation:
Second quarter revenues from navigation data products, a segment that
today exists primarily in EMEA, decreased by 1% to ¤6.3 million
compared to ¤6.4 million the same period last year. Revenues for the
first 6 months in the data products navigation segment decreased by
13% to ¤10.6 million due to the reduced demand for map updates for
older CD based systems.
Other Segments:
Revenue in the other segments, consisting of Internet and consumer
wireless markets, increased by 81% to ¤5.4 million compared to ¤3.0
million during the same period last year. Revenues for the first 6
months in other segments increased by 38% to ¤9.9 million.
Operating Expenses
Operating expenses excluding cost of revenues, depreciation,
amortization, capitalization and employee stock option expense
("Adjusted Operating Expenses"), increased by 17% to ¤54.2 million
for the second quarter of 2007 from ¤46.4 million in the same period
in 2006.
Excluding the effect of changes in exchange rates, Adjusted Operating
Expenses increased by 23%. Adjusted Operating Expenses for the first
six months increased by 16% to ¤106.7 million
Cost of revenue increased by 3% to ¤6.4 million in the second quarter
from ¤6.2 million in the second quarter of 2006. Cost of revenue
decreased as a percentage of revenue in the second quarter primarily
as a result of the elimination of the costs associated with the
compilation and conversion revenues from services previously
performed for one customer.
Including employee stock option expense, personnel expenses in the
second quarter of 2007 increased by 8% to ¤34.5 million from ¤31.9
million in 2006. Expense related to share based payments in the
second quarter of 2007 amounted to ¤4.2 million as compared to ¤5.3
million during the same period in 2006. Excluding employee stock
option expense, personnel expenses in the second quarter of 2007
increased by 14% to ¤30.3 million from ¤26.6 million in 2006 as a
result of an increased number of employees, including temporary
personnel. The increased number of employees is partly due to the
acquisitions in the second half of 2006 and demands associated with
the Company's growing business. Adjusted for the effect of changes in
exchange rates, personnel expenses, excluding employee stock option
expense, increased by 20% year over year.
Other operating expenses during the quarter increased by 21% to ¤23.9
million from ¤19.8 million in the same period during 2006. Excluding
the effect of changes in exchange rates, other operating expenses
increased 26%. This increase was primarily the result of legal costs
incurred in connection with on-going litigation and increased
marketing expenses.
Net Result
Earnings before interest, taxes, depreciation, amortization, share
based payments and capitalization of database and tool development
costs (Adjusted EBITDA) for the second quarter of 2007 increased by
67% to a profit of ¤12.2 million from ¤7.3 million for the same
period last year. Adjusted EBITDA for the EMEA region increased 30%
to ¤26.0 million for the second quarter of 2007 compared to ¤20.0
million for the second quarter of 2006 as a result of increased sales
revenues. Adjusted EBITDA for the Americas increased to ¤2.0 million
in the second quarter of 2007 from ¤0.4 million in the same quarter
during 2006. Second quarter 2007 Adjusted EBITDA for APAC was a
profit of ¤0.2 million versus a loss of ¤1.0 million in the same
quarter in 2006, mainly as a result of increased revenue. In addition
our corporate segment which includes all corporate technology,
marketing and other support activities had a loss of ¤16.0 million.
Adjusted EBITDA for the first six months of 2007 improved to a profit
17.3 million from a profit of ¤11.6 million for the same period in
2006.
The consolidated operating result (EBIT) for the second quarter
improved 81% over the same period last year to a loss of ¤1.5
million, principally due to the higher Adjusted EBITDA.
Net financial income, including interest paid and received, along
with other financing charges, amounted to a gain of ¤2.0 million
during the second quarter of 2007, compared to ¤1.1 million in the
same period of last year. The major component of the increase was the
¤0.7 million profit from the re-measurement to fair market value of
the Company's investment in Infotech, compared to a loss of ¤0.4
million the prior year.
Tax charges for the quarter were ¤2.4 million as compared to a tax
benefit of ¤11.5 million in the second quarter of 2006. The tax
benefit realization in 2006 was mainly the result of a one time ¤10.7
million benefit which was recognized following the approval by the
Dutch tax authorities of the reclassification for tax purposes of
certain inter-company financing.
Tele Atlas' consolidated after tax net loss during the second quarter
of 2007 was ¤1.2 million, compared with a net profit of ¤4.5 million
for the same period in 2006.
Cash Flow
Overall cash flow from operating activities for the second quarter of
2007 improved to an inflow of ¤1.3 million as compared to an outflow
of ¤2.7 million during the same period during 2006 primarily as a
result of increased Adjusted EBITDA.
Cash outflow from investing activities which included investments in
tangible fixed assets of ¤2.4 million and capitalized databases and
tools of ¤4.0 million decreased to ¤6.4 million from ¤7.8 million in
the second quarter of 2006.
Personnel
As of June 30, 2007 Tele Atlas employed 1,685 full time employees
world wide (December 31, 2006: 1,628).
Second Quarter Operational Highlights
Personal Navigation
Tele Atlas provides digital maps and location based content to
leading personal navigation brands such as TomTom, Mio and
ViaMichelin.
During the quarter, TomTom launched the TomTom ONE XL which features
Tele Atlas maps in the Western European, Regional European and US
versions. TomTom also introduced the TomTom One in South Africa which
is the first navigation device launched with Tele Atlas map data in
that region. In the GO range, the TomTom 720 and 520 were introduced
in June. Both units make use of Tele Atlas' phonemes to provide both
speech-to-text and text-to-speech. The new GO units are expected to
be available in the third quarter of 2007.
TomTom also launched a map update program allowing customers to
purchase map updates conveniently through TomTom HOME or via the
TomTom website.
Mio Technology introduced several new units during the quarter such
as the C320 the C520 and the C520t which are all equipped with 4.3
inch screens and the latest Tele Atlas maps. To reach the low cost
segment of this market, Mio launched the C220. This unit will be
priced at ¤199 and is as such one of most affordable units on the
market. Mio currently is the number three player in the European
market and has grown to become one of Tele Atlas's largest customers.
Enterprise and Government
Tele Atlas continues to be the leading digital map supplier to the
enterprise and government segment.
Enterprise agreements with the states of Connecticut and Tennessee
were renewed demonstrating continued trust in Tele Atlas for critical
public safety applications. The US Department of Justice awarded a
new three year agreement to Tele Atlas which allows all US law
enforcement officials to use our maps to geographically coordinate
their respective investigations.
Tele Atlas' ability to deliver quality datasets for critical
emergency services applications was demonstrated by American Medical
Response's expansion of their Tele Atlas agreement to enable
ambulance dispatch services beyond their initial state of California.
Tele Atlas also renewed the enterprise license agreements with The US
Environmental Protection Agency and the US Army Corps of Engineers
Coverage Advances, New Products and Innovations.
During the quarter, the first Tele Atlas 3D city maps were released,
including maps for major European cities including Berlin, London and
Rome. Additional European, U.S. and Asian cities are scheduled to be
released during the next year. The 3D city maps product complements
Tele Atlas' existing 3D offerings, and is designed to help drivers
and pedestrians more easily orient themselves using the appearance of
an approaching or nearby destination. With 3D capabilities, screen
images in automotive and portable navigation systems and local search
applications on mobile devices more closely match what users actually
see in their surroundings.
Tele Atlas places2protect was launched for the United States in June,
which is designed to provide highly accurate location-based and
property information on emergency medical services and critical
access facilities and institutions, including hospitals, schools,
daycare centers and government offices to help ensure federal, state
and local governments and commercial enterprises to integrate
accurate location information for these facilities into their
map-based applications.
Automotive Navigation
Tele Atlas supplies maps to leading automotive brands and OEM
equipment manufacturers such as Audi, Bentley, Bosch/Blaupunkt,, BMW,
DaimlerChrysler, Denso, Ford, General Motors, Harman/Becker
Automotive, Pioneer, Porsche, SiemensVDO, Toyota, VW and many others.
During the quarter, the first automotive navigation system in Europe
with full voice recognition supplied by Tele Atlas phoneme data was
released by DaimlerChrysler for the new C-class which will be
available as of the summer.
Ford launched a new Blaupunkt/Tele Atlas DVD system in Europe for the
new Mondeo. The system will become available on other Ford models
later in the year.
In Russia and South East Asia, the first Tele Atlas products were
released by DaimlerChrysler for the new C-class with the Mitsubishi
Electric Platform.
For Russia, the addition of Audi as a Tele Atlas customer means that
all German premium brands; Audi, BMW, DaimlerChrysler and Porsche,
now source Tele Atlas data of Russia in their navigation systems.
Full Year 2007 Outlook
Prior to the announcement of the proposed transaction with TomTom,
management saw no reason to materially revise the previous 2007 full
year guidance of approximately ¤315 million in revenues, Adjusted
EBITDA of approximately ¤65 million and operating profit (EBIT) of
approximately ¤3 million. Subsequent to 2007, Tele Atlas' current
expectation is that, barring unforeseen circumstances, the Company
can grow revenues in excess of 20% on an annual basis for the next
several years and that Adjusted EBITDA for each year will increase by
approximately 50% of incremental revenue. However, it is currently
difficult to assess the impact, if any, the announcement and ongoing
progress of the proposed transaction may have on our results for 2007
and beyond.
This outlook is based on current circumstances, business estimates
and expectations of future market and business, and is subject to
revision based upon unforeseen circumstances.
For more information, please contact:
Jasper Vredegoor
Investor Relations Manager, Tele Atlas NV
Phone: + 31 73 640 21 70
jasper.vredegoor@teleatlas.com
Webcast Q2 results 2007: 31 July 14:00 CET,
www.teleatlas.com/investors
Ticker Symbols
ISIN: NL0000233948
Eurolist by Euronext Symbol: TA
Geregelter Markt in Frankfurt (TecDax) Symbol: TA6
WKN: 927101
About Tele Atlas
Tele Atlas delivers the digital maps and dynamic content that power
some of the world's most essential navigation and location-based
services (LBS). The information is the foundation for a wide range of
personal and in-car navigation systems and mobile and Internet map
applications that help users find the people, places, products, and
services they need, wherever they are. The company also works with
business partners who trust its digital map data to deliver critical
applications for emergency, business, fleet, and infrastructure
services. Through a combination of its own products and partnerships,
Tele Atlas offers digital map coverage of more than 200 countries and
territories worldwide. The company was founded in 1984 and today has
approximately 2,400 full-time staff and contract cartographers at
offices in 24 countries and uses a sophisticated network of
professional drivers, mobile mapping vans, and more than 50,000 data
resources to deliver highly accurate and up-to-date digital maps.
Tele Atlas is listed on the Frankfurt Stock Exchange (TA6) and on
Euronext Amsterdam (TA). For more information, visit
www.teleatlas.com.
Forward Looking Statements
This release contains certain forward-looking statements. These
forward-looking statements are not historical facts but rather are
based on current expectations, estimates and projections about the
industry, the Company's beliefs and its assumptions. Words such as
"anticipates," "expects," "intends," "outlook," "plans," "believes,"
"seeks," "may," "will," "should" and "estimates," and variations of
these words and similar expressions, are intended to identify
forward-looking statements. These statements are not guarantees of
future performance and are subject to risks, uncertainties and other
factors, some of which are beyond the Company's control, are
difficult to predict and could cause actual results to differ
materially from those expressed, implied or forecast in the
forward-looking statements. In addition, the forward-looking events
discussed in this press release might not occur. These risks and
uncertainties include, among others, those set forth herein and under
"Risk Profile" in the Company's 2006 annual report. Readers are
cautioned not to place undue reliance on these forward-looking
statements. Readers should read this press release with the
understanding that actual future results and events may be materially
different from what we currently expect. The forward-looking
statements included in this press release reflect Tele Atlas' views
and assumptions only as of the date of this press release. The
Company undertakes no obligation to update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Tele Atlas and the Tele Atlas logo are registered trademarks and
trade names of Tele Atlas N.V. Other trademarks and trade names are
the property of the owners of those trademarks and trade names.
The press release can be downloaded from the following link:
