(Reuters) -Digital mapping specialist TomTom suspended its financial targets for 2025 on Monday after a wider than expected second-quarter operating loss, as weak demand for new cars hit revenues in its key automotive location technology business.
TomTom’s results have been impacted by falling demand for new vehicles. In Europe, new car sales fell 3% in May compared to a year earlier.
The Amsterdam-based company said it would not meet its 2025 guidance, and that it would provide new targets for next year when it reports 2024 full-year results.
It had previously expected to reach 600 million euros of location technology revenues in 2025.
TomTom posted a loss before interest and taxes of 5.2 million euros ($5.7 million) 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 Microsoft’s solutions.
($1 = 0.9179 euros)
(Reporting by Mathias de Rozario and Leo Marchandon in Gdansk; editing by Milla Nissi)
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