TomTom suspends 2025 targets as weak car demand hits sales

Digital mapping specialist TomTom suspended its financial targets for 2025 after a wider-than-expected second-quarter operating loss on Monday, as weak demand for new cars hit revenues in its key automotive location technology business.

"A combination of downward revisions for near-term car production volumes and delays in new model introductions has resulted in a generally less predictable market environment," CEO Harold Goddijn said in the earnings statement.

New car sales fell 3 per cent in Europe in May, compared to the same period a year earlier.

Amsterdam-based company said it would not meet its 2025 guidance due to the lower automotive demand. It will provide new targets for next year when it reports 2024 full-year results.

It had previously expected to reach 600 million euros ($654 million) of location technology revenues in 2025.

TomTom also expects its 2024 revenue to be at the lower end of its previous 570-610 million euro guidance range, Goddijn said.

The company posted a loss before interest and taxes of 5.2 million euros 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, providing location technology across the US group's solutions.