Digital navigator TomTom's profit beats forecasts
Dutch navigation and digital maps firm has also won two contracts in the growth area of high definition maps
Dutch navigation and digital maps firm TomTom reported a forecast-beating 14 per cent rise in first-quarter revenue and said it had won two contracts in the growth area of high definition (HD) maps.
"We had a good start of the year, winning the first two available HD map deals, which gives us an early position in this growth market," said chief executive Harold Goddijn.
TomTom, which competes with rivals including Google maps, said the HD contracts had been won with two of the world's largest car companies but gave no further detail.
First-quarter revenue reached €169.5 million (Dh704.1m), above an average forecast of €157m from analysts polled by the company.
Earnings before interest, tax, depreciation and amortisation (ebitda) of €18.8m also beat an average forecast of €12m.
TomTom, which in January agreed to sell its fleet management business to Japan's Bridgestone for €910m, reiterated its full-year outlook for revenue of €675m, including €430m from its location technology, and free cash flow of around 10 per cent of revenue.
Free cash flow (FCF) in the first quarter was a negative €20.2m, versus an average forecast for an outflow of €5m.
The company said the FCF outflow in the first quarter was expected due to the seasonality of customer payments, adding that cash inflow will materialise during the rest of 2019.
Updated: April 17, 2019 11:30 AM