TomTom suspends 2025 targets as Q2 operating loss widens (updated)
15/07/2024 06:50
(Adds context in paragraph 2, previous 2025 target in 4, deal
with Microsoft in 7)
July 15 (Reuters) - Digital mapping specialist TomTom
TOM2.AS suspended its financial targets for 2025 on Monday
after a wider than expected second-quarter operating loss, as
weak demand for new cars hit revenues in its key automotive
location technology business.
TomTom's results have been impacted by falling demand for
new vehicles. In Europe, new car sales fell 3% in May compared
to a year earlier.
The Amsterdam-based company said it would not meet its 2025
guidance, and that it would provide new targets for next year
when it reports 2024 full-year results.
It had previously expected to reach 600 million euros of
location technology revenues in 2025.
TomTom posted a loss before interest and taxes of 5.2
million euros ($5.7 million) for the second quarter of 2024,
versus a loss of 3.6 million euros in the same period last year.
Analysts on average were expecting a loss of 4 million euros
for the quarter, a company-compiled consensus showed.
In a separate press release, TomTom said it was deepening
and extending its collaboration with Microsoft MSFT.O ,
providing location technology across Microsoft's solutions.
($1 = 0.9179 euros)
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(Reporting by Mathias de Rozario and Leo Marchandon in Gdansk;
editing by Milla Nissi)
((mathias.derozario@thomsonreuters.com ;
leo.marchandon@thomsonreuters.com))