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Map maker TomTom’s Q3 loss narrows boosted by car branch growth

by Uma
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Map maker TomTom’s Q3 loss narrows boosted by car branch growth

(Reuters) -Digital mapping specialist TomTom on Friday reported a smaller than expected operating loss for the third quarter, driven by strong sales of its automotive branch that grew faster than car production in its key markets.

The Dutch group, which counts Volkswagen and Stellantis among its customers, competes with Google Maps and the world’s biggest mapping platform HERE, owned by German automakers and U.S. chipmaker Intel.

TomTom said its quarterly operating loss narrowed to 8.7 million euros ($9.2 million) from a loss of 17.8 million a year earlier. Analysts polled by the company had forecast a loss of 11 million euros.

It reported a third quarter revenue of 144.1 million euros, up 6% from a year earlier but slightly below analysts’ estimate of 145 million euros.

“Year-on-year Automotive operational revenue growth outperformed car production trends in our core markets,” Chief Financial Officer Taco Titulaer said in a statement.

The automotive unit’s sales rose 32% to 82.5 million euros, making up around 57% of the group total. In 2022, it generated 46% of TomTom’s revenue.

The enterprise branch saw sales fall 20% to 36.8 million euros, reflecting lower values of some renewed contracts, while consumer service revenue decreased 11% to 24.9 million.

The Amsterdam-listed company confirmed its 2023 guidance for a revenue of between 570 million and 600 million euros.

($1 = 0.9481 euros)

(Reporting by Gaëlle Sheehan and Nathan Vifflin in Gdansk; editing by Milla Nissi)