- Continue to expand the WEBFLEET installed base, organically and through bolt-on acquisitions and partnerships
WEBFLEET subscriber base
Our strong growth was achieved through a combination of organic growth and acquisitions. In 2014, we acquired DAMS Tracking, the fleet management business of DAMS in France, and Fleetlogic, a leading fleet management service provider in the Netherlands. The combined acquisitions added 54,000 subscriptions to our active installed base and allowed us to further strengthen our market position in these respective markets.
LINK 200 + WEBFLEET Lite subscription
In 2014, we launched the LINK 200 tracking box to provide an entry-level track and trace product that can help small businesses take advantage of connected car technology.
The device plugs directly into a vehicle's on-board diagnostic system (OBD) port, eliminating installation charges.
LINK 200 is offered on a rental basis as part of the newly introduced WEBFLEET Lite subscription and reflects Telematics' introduction of bundled hardware and software rental models.
PRO 8270/5 driver terminals
We also introduced our new PRO range driver terminals, which can be connected to the WEBFLEET platform. The flagship product in the range is the 7'' ruggedised PRO 8 driver terminal, which is designed to seamlessly integrate real-time information into back-end systems.
It is provided with a ready-to-use mobile device management platform, which extends WEBFLEET capabilities to fully integrate mobile workforce applications. The PRO 8 series offers additional integration capabilities for customised Apps using the new PRO.connect API and Software Development Kit (SDK).
We announced two strategic partnerships in the insurance telematics industry with Allianz (France) and Signal Iduna (Germany) to develop consumer insurance products using TomTom Telematics technology. The new insurance solutions demonstrate opportunities for developing innovative smartphone apps using vehicle data, provided by OBD-based vehicle connected devices.
WEBFLEET technology platform
TomTom Telematics has an established, scalable technology platform, with product solutions suitable for both small and large businesses. To date, more than 300 software and hardware application partners have integrated the WEBFLEET platform into their product applications, making it adaptable to any business requirement. In May 2014, the first international developer's conference for WEBFLEET partners was held in Amsterdam. We will continue to expand this network of partners.
Key figures overview
(€ in millions,unless stated otherwise)
EBITDA margin (%)
EBIT margin (%)
Monthly WEBFLEET ARPU (€)
WEBFLEET subscriber installed base
- Change percentages are based on non-rounded figures.
Telematics revenue in 2014 was €110 million, a 30% growth year on year (2013: €85 million). This strong increase was driven by the ongoing growth of the WEBFLEET subscriber base and by higher hardware revenue, driven by the launch of our new PRO range driver terminals. The recurring subscription revenue for the year was €76 million compared to €56 million in 2013, an increase of 34% year on year.
Telematics increased EBITDA by 38% year on year to €39 million in 2014 (2013: €28 million), which led to an improved EBITDA margin of 35% in 2014 (2013: 33%).
EBIT amounted to €34 million in 2014, a 30% increase compared to last year (2013: €26 million). In 2014, Telematics saw a strong gross margin slightly offset by higher operating expenses. We increased our sales and marketing costs in 2014 to support further organic growth. Our operating expenses were also impacted by the integration costs related to our recent acquisitions. The integration of these acquisitions developed according to plan.
Our monthly WEBFLEET ARPU decreased slightly year on year, which mainly related to product mix changes, regional mix changes and acquisitions.
With the company's ongoing commitment to innovation, sustained investment in R&D and capacity to leverage economies of scale, we are in a strong position to capitalise on favourable market opportunities.
In 2015, we aim to continue to accelerate our growth path, organically as well as through acquisitions and strategic partnerships. We will further develop the strength, reliability and performance of the WEBFLEET platform.