TomTom revenue drops; sees lower 2025 earnings on automotive market slowdown (updated)
04/02/2025 06:45
(Adds market details in paragraph 3, CFO quote in paragraph 4)
By Hugo Lhomedet and Mathias de Rozario
Feb 4 (Reuters) - Dutch digital mapping specialist
TomTom TOM2.AS reported a 2% drop in its annual revenue on
Tuesday, slightly above estimates and said it expects lower 2025
earnings on continued challenges due to a slowdown in the global
automotive market.
The Amsterdam-based company posted a revenue of 574.4
million euros ($591.17 million) for the year ended Dec. 31,
marginally above the 573 million euros expected in a
company-provided consensus.
The company, which makes 57% of its sales from automotive
location technology applications, has been impacted by a
slowdown in the automotive market, with an increase of 0.9% in
new car sales in Europe, compared with a 13.9% jump a year
earlier.
Due to the market headwinds, TomTom suspended its 2025
location technology revenue outlook in July 2024.
"Given market conditions in Automotive, we continue to have
limited visibility for 2025," CFO Taco Titulaer said in a
release on Tuesday.
The group expects lower revenue in 2025, between 505 million
euros and 565 million euros. It sees location technology revenue
between 440 million euros and 490 million euros, and free-cash
flow at break-even in 2025.
($1 = 0.9716 euros)
(Reporting by Hugo Lhomedet and Mathias de Rozario; Editing by
Rashmi Aich)
((Hugo.Lhomedet@thomsonreuters.com;
Mathias.derozario@thomsonreuters.com))