By Hugo Lhomedet and Mathias de Rozario
(Reuters) -Dutch digital mapping specialist TomTom reported a 2% drop in its annual revenue on Tuesday, slightly above estimates and said it expects lower 2025 earnings on continued challenges due to a slowdown in the global automotive market.
The Amsterdam-based company posted a revenue of 574.4 million euros ($591.17 million) for the year ended Dec. 31, marginally above the 573 million euros expected in a company-provided consensus.
The company, which makes 57% of its sales from automotive location technology applications, has been impacted by a slowdown in the automotive market, with an increase of 0.9% in new car sales in Europe, compared with a 13.9% jump a year earlier.
Due to the market headwinds, TomTom suspended its 2025 location technology revenue outlook in July 2024.
“Given market conditions in Automotive, we continue to have limited visibility for 2025,” CFO Taco Titulaer said in a release on Tuesday.
The group expects lower revenue in 2025, between 505 million euros and 565 million euros. It sees location technology revenue between 440 million euros and 490 million euros, and free-cash flow at break-even in 2025.
($1 = 0.9716 euros)
(Reporting by Hugo Lhomedet and Mathias de Rozario; Editing by Rashmi Aich)
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