Navigation firm TomTom Q1 operating result turns to loss on higher R&D costs (updated)
17/04/2024 06:32
(Adds revenue and background from paragraph 4)
April 17 (Reuters) - Digital mapping specialist TomTom
TOM2.AS said on Wednesday its operating result turned to a
wider-than-expected loss in the first quarter, weighed down by
an increase in research and development costs.
The Amsterdam-based company posted a loss before interest
and taxes of 4.9 million euros ($5.2 million) for the first
three months of 2024, versus a profit of 2.6 million euros last
year.
Analysts were expecting a loss of 2 million euros on
average, a company-compiled consensus showed.
TomTom's revenue fell 1% to 139.3 million euros, missing
expectations of 144 million euros.
Its automotive business, which represents around 60% of the
total revenue, reported a 6% drop in operational revenue due to
lower car production volumes.
The location data pioneer, which started by providing a
navigational tool for turn-by-turn directions, has gone through
major restructuring and is now developing high-definition
self-driving maps that integrate consumer data and advanced
driver assistance systems.
($1 = 0.9414 euros)
(Reporting by Mathias de Rozario and Gaëlle Sheehan in Gdansk;
editing by Milla Nissi)
((mathias.derozario@thomsonreuters.com))