Trading update AND International Publishers NV
Rotterdam, 13 November 2014 – AND realized a profit in the first nine months of 2014. Compared to the first nine months of 2013 revenue showed a limited increase and the profit increased considerably. Based on these results AND expects for 2014 a higher revenue and profit compared to the year 2013.
AND Chief Executive Office Hugo van der Linde: “We are satisfied with the course of events in the third quarter of 2014. During the quarter we made further progress with the development of the navigation map of North-America. The upgrade and enrichments program is on schedule.”
Course of events
During the third quarter AND further invested in the development of a high quality navigation map of North-America. Earlier this year an important contract was signed with ALK Technologies Inc. from Princeton. The upgrade and enrichments program is on schedule and is expected to be completed mid-2015.
Together with its current Western European navigation map AND will double its coverage of navigation maps. With this increase in coverage AND expects to further attract global customers.
AND realized a profit in the first nine months of 2014. Revenue showed a limited increase during the first nine months of 2014 compared to the same period in 2013. Profit for the first nine months of 2014 increased considerably compared to first nine month in the year before.
In the third quarter of 2014 revenue increased compared to third quarter in 2013. The third quarter was closed with a positive result compared to a small negative result in the third quarter of 2013.
Revenue from the ALK contract for the creation of the navigation map of North-America provided an important contribution to the overall revenue realized.
Total operating expenses increased considerably during the first nine months of 2014 as a result of the investment in the map of North-America. These costs spent on the development of the map of North-America have been capitalized and represent a considerable part of AND’s total operating expenses. As a result AND’s net operating expenses strongly decreased compared to 2013.
AND is the only independent company in the global map market for digital maps for location based services. This offers opportunities and AND will continue to improve and extend its existing maps more effectively. In addition AND will increase its added value by offering its maps and data as customized services.
Outlook for 2014
The economic conditions, market developments and business models in the market for digital maps are still highly uncertain. The results will depend among others on the strength of economic recovery, the developments in the market for navigation and location-based services. Also AND is still highly dependent on a few large customers and new orders to be acquired. Based on the realized results AND expects revenue and profit in 2014 will be higher compared to 2013.
This is an English translation of the Dutch press release. In the event of any disparity between the Dutch original and this translation, the Dutch text will prevail.