TomTom sees huge rise in Q2 net profit


Dutch navigation system firm TomTom NV reported a 69 per cent leap in second quarter net profit Wednesday to CAN$45.5 million.

The company credited much of that success to higher sales volumes and in increased content provided to vehicle manufacturers.

According to The Associated Press, a growth area for TomTom was at its automotive division, which sells maps and content to automakers and suppliers. Revenues grew 82 per cent to $59 million from $32 million last year.

“We made some important steps this quarter with the development of our new software architecture, which will allow us to bring innovations to the market faster,” CEO Harold Goddijn said in a release.

The company went on to say it would launch some new products in the second half
of 2010, noting that a stronger U.S. dollar in negatively impacting margins, a trend expected to grow more prominent in Q3.

In addition to the financial growth, TomTom said its market share in Europe rose slightly to 49 per cent. Market share in the massive North America grew steadily from 19 to 23 per cent year-over-year.

- With files from The Associated Press