Map maker TomTom's Q3 loss narrows boosted by car branch growth (updated)
13/10/2023 07:02
(Adds context in paragraph 2, results details, CFO quote and
outlook reiteration from para 4)
Oct 13 (Reuters) - Digital mapping specialist TomTom
TOM2.AS on Friday reported a smaller than expected operating
loss for the third quarter, driven by strong sales of its
automotive branch that grew faster than car production in its
key markets.
The Dutch group, which counts Volkswagen VOWG_p.DE and
Stellantis STLAM.MI among its customers, competes with Google
Maps GOOGL.O and the world's biggest mapping platform HERE,
owned by German automakers and U.S. chipmaker Intel INTC.O .
TomTom said its quarterly operating loss narrowed to 8.7
million euros ($9.2 million) from a loss of 17.8 million a year
earlier. Analysts polled by the company had forecast a loss of
11 million euros.
It reported a third quarter revenue of 144.1 million euros,
up 6% from a year earlier but slightly below analysts' estimate
of 145 million euros.
"Year-on-year Automotive operational revenue growth
outperformed car production trends in our core markets," Chief
Financial Officer Taco Titulaer said in a statement.
The automotive unit's sales rose 32% to 82.5 million euros,
making up around 57% of the group total. In 2022, it generated
46% of TomTom's revenue.
The enterprise branch saw sales fall 20% to 36.8 million
euros, reflecting lower values of some renewed contracts, while
consumer service revenue decreased 11% to 24.9 million.
The Amsterdam-listed company confirmed its 2023 guidance for
a revenue of between 570 million and 600 million euros.
($1 = 0.9481 euros)
(Reporting by Gaëlle Sheehan and Nathan Vifflin in Gdansk;
editing by Milla Nissi)
((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))