TomTom: gross margin rises in the first quarter
(CercleFinance.com) - Dutch digital map company TomTom on Tuesday reported higher first-quarter margins and profit, despite a drop in revenue.
TomTom reported quarterly EBITDA of 44 million euros for the three first months of the year, compared to 34 million euros a year earlier, with a gross margin of 70%, up from 63% in the first quarter of 2017.
"TomTom started the year with a solid set of results," commented chief executive officer Harold Goddijn.
"Nearly 70% of our revenues are now derived from data, software & services, boosting our gross margin," he said.
Despite this, the group's revenue slipped to 192 million euros, down from 213 million euros a year ago.
For 2018, TomTom still forecasts revenue of around 800 million euros, with adjusted earnings per share of around 0.25 euro this year.
The shares are currently up 2.5% at 8 euros on Euronext Amsterdam after these numbers.
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