NAVTEQ affected by economic downturn

21 Apr 2009

With the announcement of its financial results for the first quarter 2009, Nokia unveiled the performance of its subsidiary, digital map maker NAVTEQ. "[in the] first quarter 2009 NAVTEQ net sales decreased 36% sequentially to EUR 132 million, compared with EUR 205 million in the fourth quarter 2008, reflecting a sharp decline in demand for auto navigation systems and mobile navigation devices due to the challenging macroeconomic environment, and destocking," stated Nokia's press release.

The press release also explained, that part of the 36% decline is obviously due to a seasonality effect (better sales in Q4 than Q1) and that it is interesting to remind that its quarterly revenue was $224.5 million. Assuming a 1Q08 average USD/Euro rate of $1.50 (source:NAVTEQ), it meant €150 million, therefore a 12% revenue decline on a year on year basis.