Investing.com -- Dutch digital mapping firm, TomTom, reported a minor 2% decrease in its yearly revenue on Tuesday, slightly surpassing estimates.
The company anticipates a dip in 2025 earnings due to ongoing challenges stemming from a slowdown in the global automotive market.
The Amsterdam-based company reported a revenue of 574.4 million euros ($591.17 million) for the year ending Dec. 31, slightly above the expected 573 million euros, according to a company-provided consensus.
TomTom, which generates 57% of its sales from automotive location technology applications, has experienced the impact of a slowdown in the automotive market.
The company saw a modest 0.9% rise in new car sales in Europe, contrasting with a significant 13.9% increase in the previous year.
In response to these market challenges, TomTom suspended its 2025 location technology revenue forecast in July 2024. "Given market conditions in Automotive, we continue to have limited visibility for 2025," said CFO Taco Titulaer in a statement on Tuesday.
The company forecasts lower revenue for 2025, ranging between 505 million euros and 565 million euros. It predicts location technology revenue to be between 440 million euros and 490 million euros, with free-cash flow reaching break-even in 2025.
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