TomTom: posts first-quarter loss on falling demand

(CercleFinance.com) - TomTom, a Dutch maker of car navigation devices, posted a loss for the first quarter, with its revenue hit head on by a decline in demand arising from retailers being closed, and people not driving.


Its earnings before interest and tax (EBIT) fell to -5.4 million euros in the past quarter, from a profit of 18.8 million euros in the first quarter of 2019.

TomTom posted a net loss of 62.8 million euros for the period, from a net profit of 3.3 million euros in the same period one year ago.

Group revenue decreased by 23% to 131 million euros, as its business mostly comes from customer vehicle sales, which are sharply impacted by factory closures.

Citing its debt-free balance sheet, TomTom said it has the resilience to maintain its course, despite the current uncertainties, even though its share buybacks have now been suspended until further notice.

The TomTom share was down about 7% in early trade in Amsterdam following the report.

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