October 28, 2020

car

automotive

TomTom reports drop in earnings, automotive gains

Recasts with forecasts, adds details

Oct 14 (Reuters)Dutch mapping and navigation company TomTom TOM2.AS on Wednesday forecast a 25% drop in full-year sales, as it reported a better-than-feared fall in third-quarter earnings, although its automotive division surpassed expectations.

The Amsterdam-based company, whose customers range from major carmakers to leading global tech firms, said it now expects reported revenue of 530 million euros ($622.33 million) for the full-year, slightly below consensus estimates of 536 million.

The group said it saw growth in its automotive business, which provides maps and navigation software to carmakers.

“For Q4, we expect that automotive operational revenue continues to show strong sequential growth,” said finance chief Taco Titulaer, citing improved car production as the division beat expectations, growing sales 19% year-on-year.

European new car sales gradually picked up over the summer, after lockdowns shuttered showrooms and brought traffic to a halt. Industry data showed new registrations down 18% in August, after falling 24% in July and 78% in June.

However, both the consumer and enterprise divisions – which sell portable satnavs and mapping software to tech firms and government bodies – performed worse than expected.

The group reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of 3.9 million euros ($4.58 million), down from 15.9 million a year earlier, but beating analysts’ estimates of an EBITDA of 1 million euros.

TomTom also announced on Tuesday the extension of its maps and traffic supply contract with Uber UBER.UL, the ride-hailing company now becoming a map editing partner.

($1 = 0.8516 euros)

(Reporting by Sarah Morland in Gdansk; Editing by Clarence Fernandez and Louise Heavens)

((sarah.morland@thomsonreuters.com; +48 58 778 53 35;))

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