{"id":10032,"date":"2023-04-14T08:51:13","date_gmt":"2023-04-14T08:51:13","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/tomtoms-q1-revenue-beats\/"},"modified":"2023-04-14T08:55:05","modified_gmt":"2023-04-14T08:55:05","slug":"navigation-firm-tomtoms-shares","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/navigation-firm-tomtoms-shares\/","title":{"rendered":"Navigation firm TomTom’s shares jump after surprise Q1 profit"},"content":{"rendered":"

By Augustin Turpin<\/p>\n

(Reuters) -Dutch navigation and digital mapping group TomTom reported a surprise first-quarter profit on Friday helped by cost controls and sales growth in its location pin-pointing and automotive markets, sending its shares up 8%.<\/p>\n

TomTom, which counts Volkswagen, Renault and Microsoft among its clients, had been hit by soaring inflation and the global chip shortage that disrupted the automotive and electronics industries.<\/p>\n

But the Amsterdam-based company said operating expenses declined year-on-year in the first quarter, helped by the reorganisation of its maps business announced last year.<\/p>\n

“The decrease mainly reflects efficiency gains realized in the research and development activities for our geographic data,” TomTom said.<\/p>\n

The company reported an operating profit of 2.6 million euros ($2.88 million) in the first quarter. Analysts polled by the company had forecast a loss of 12 million euros. It had posted a loss of 19.8 million euros a year earlier.<\/p>\n

“First quarter results good. Solid growth while maintaining cost control,” Oddo BHF analyst Wim Gille said in a note to clients. He said TomTom’s operating expenses were 3% lower than analysts’ consensus.<\/p>\n

“Operational progress showing good traction of the new Map making platform,” Gille added.<\/p>\n

TomTom said its automotive division’s operational revenue rose 22% in the quarter, outperforming car production growth in its core markets. Its biggest location technology unit also continued to gain momentum.<\/p>\n

The group’s revenue rose 10% to 141 million euros against analysts’ estimate of 132 million euros, driven by 12% growth in location technology and 34% growth in automotive.<\/p>\n

“Supported by growing revenues, we expect to generate positive free cash flow in the range of 0% to 5% of group revenue this year,” finance chief Taco Titulaer said.<\/p>\n

The group reiterated its revenue guidance for the year.<\/p>\n

($1 = 0.9035 euros)<\/p>\n

(Reporting by Augustin Turpin in Gdansk Editing by Milla Nissi and Mark Potter)<\/p>\n

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By Augustin Turpin (Reuters) -Dutch navigation and digital mapping group TomTom reported a surprise first-quarter profit on Friday helped by cost controls and sales growth in its location pin-pointing and automotive markets, sending its shares up 8%. TomTom, which counts Volkswagen, Renault and Microsoft among its clients, had been hit by soaring inflation and the […]<\/p>\n","protected":false},"author":8,"featured_media":10033,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1220],"tags":[1223],"class_list":["post-10032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-technology","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ3D03N-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/10032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=10032"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/10032\/revisions"}],"predecessor-version":[{"id":10240,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/10032\/revisions\/10240"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/10033"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=10032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=10032"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=10032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}