TomTom: Ebitda stabilises, shares fall
(CercleFinance.com) - TomTom has announced that its operating profit stabilised in the past quarter, which failed to support the shares on Euronext Amsterdam.
The Dutch maker of personal navigation devices generated revenue of 220 million euros in the fourth quarter, down 17% year-on-year, due to the decline of its customer products.
TomTom's fourth-quarter Ebitda reached 37 million euros, slightly below the 39 million euros posted a year earlier.
Due to the continued decline of its consumer division, the company said it expects to generate revenues of around 800 million euros in 2018, compared to 903 million euros in 2017.
In its statement, TomTom insisted that it is now becoming a "software technology company."
"Our business continues to shift towards higher gross margins, better predictability due to longer term contracts and more upfront cash
flows," it said.
"Over 60% of our revenue is now coming from data, software and services," the firm added.
Investors did not seem to be convinced, however. The TomTom share has fallen by as much as 6.8% on Tuesday, reaching its lowest level since the end of 2016.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The Dutch maker of personal navigation devices generated revenue of 220 million euros in the fourth quarter, down 17% year-on-year, due to the decline of its customer products.
TomTom's fourth-quarter Ebitda reached 37 million euros, slightly below the 39 million euros posted a year earlier.
Due to the continued decline of its consumer division, the company said it expects to generate revenues of around 800 million euros in 2018, compared to 903 million euros in 2017.
In its statement, TomTom insisted that it is now becoming a "software technology company."
"Our business continues to shift towards higher gross margins, better predictability due to longer term contracts and more upfront cash
flows," it said.
"Over 60% of our revenue is now coming from data, software and services," the firm added.
Investors did not seem to be convinced, however. The TomTom share has fallen by as much as 6.8% on Tuesday, reaching its lowest level since the end of 2016.
Copyright (c) 2018 CercleFinance.com. All rights reserved.