Digital mapping specialist TomTom expects annual gross sales of its location expertise unit to come back on the decrease finish of its steerage vary of 490-520 million euros ( USD 536-569 million), it stated on Friday after weak demand for brand new automobiles hit its third-quarter income.
It reiterated the group-level outlook for 2024 income on the low finish of its 570-610 million euro vary.
WHY IT’S IMPORTANT
A slowdown in international auto demand has impacted TomTom, which makes a bulk of its gross sales from location expertise functions for automobiles. In July, it suspended its 2025 targets and trimmed its income expectations for 2024 due to this.
The group, whose shares have misplaced greater than a fifth of their worth because the begin of the 12 months, has been investing in its new mapping platform, TomTom Orbis, to attempt to compensate for the regular decline in its shopper division gross sales by rising the situation expertise enterprise, together with automotive.
CONTEXT
The automotive market has continued to deteriorate since TomTom reported its final quarterly outcomes, with a 18.3% drop in new automotive gross sales within the European Union in August to their lowest degree in three years.
The placement knowledge pioneer, which began by offering a navigational instrument for turn-by-turn instructions, is now creating excessive definition self-driving maps that combine shopper knowledge and superior driver help programs.
BY THE NUMBERS
TomTom’s income fell to 140.7 million euros within the third quarter, lacking analysts’ consensus of 142 million, weighed down by declines within the automotive and shopper divisions.
Its loss earlier than curiosity and tax narrowed to 4.1 million euros within the quarter from a lack of 8.7 million a 12 months earlier, smaller than the lack of 5 million euros seen within the company-provided consensus.
