Today, April 23rd, TomTom reported lower than expected net loss for the first quarter and said it sticks to its 2013 forecast.
TomTom, which is the largest navigation devices maker in Europe and among the three-largest digital map-makers in the world, reported a net loss during the first quarter of 2 million euro, the same as last year, and 202 million-euro revenue, down 13%. Analysts expected TomTom’s first quarter net loss to reach 5.85 million and 203 million euro revenue.
“It’s a tough marketplace,” Chief Executive Harold Goddijn told reporters on a conference call, pointing to a continuing decline in car sales in Europe. “Sales in the first quarter were again down. And that comes after a dreadfully bad 2012 so the suffering is ongoing.”
TomTom’s profit in connected to the performance of its customers, such as Fiat, Renault and PSA Peugeot Citroen, which have been hit by weak consumer demand in Europe, a market which heads towards its sixth consecutive year of decline. In March auto sales in Europe dropped 10.3%, as the financial crisis began to affect the more prosperous north.