(Reuters) – Digital mapping specialist TomTom has raised its revenue and free cash flow guidance for the current year after reporting a lower-than-expected second-quarter operating loss, thanks the gradual deployment of new cards.
TomTom stock was up 9.9% at 0848 GMT in Amsterdam.
The Netherlands-based company, which counts Volkswagen, Hyundai and Amazon among its customers, is now targeting sales of between 570 and 600 million euros this year, down from an earlier forecast of between 540 and 580 million. euros.
Free cash flow is expected to be 5% of revenue this year, after an earlier forecast of 0-5%.
In recent years, TomTom has invested heavily in maps and navigation technology for automated driving, competing with Google Maps and automotive map maker HERE.
“We have shared sample data with a number of important customers who are interested in evaluating the product,” chief executive Harold Goddjin told Reuters, citing interest from major technology companies and passenger and passenger services. delivery for these new services.
Although the rollout of these maps has not yet impacted revenue, TomTom has been able to realize savings through reduced costs, added Harold Goddjin.
Although the launch of the maps platform has not yet had an effect on turnover, it has enabled TomTom to save money and improve efficiency by reducing costs, Harold Goddjin pointed out.
TomTom announced a loss before interest and tax (EBIT) of 3.6 million euros for the second quarter, against a forecast loss of 7 million euros.
(Report Augustin Turpin in Gdansk, Dina Kartit, edited by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
