TomTom navigation are seen in front of TomTom displayed logo in this illustration taken July 28, 2017. REUTERS/Dado Ruvic
(Reuters) – Dutch navigation and digital maps firm TomTom (TOM2.AS) reported a forecast-beating 12% rise in second quarter revenue on Wednesday, citing the strength of its location technology business.
Second-quarter revenue reached 210.8 million euros (£190 million), above a 177 million euro ($199 million) consensus forecast from analysts polled by the company.
“The positive revenue trend continued into the second quarter, with location technology growing 25%,” Chief Executive Officer Harold Goddijn said in a statement.
The company upgraded its full year revenue guidance to at least 700 million euros from 675 million euros saying it expected higher demand from both sales of maps, traffic information and navigation software to business customers. TomTom said the higher guidance also reflected a smaller decline in its consumer business than assumed before.
TomTom maintained its 2019 adjusted earnings per share outlook of 0.15 euros, but downgraded its full year free cash flow guidance to 9% of revenue from 10% because of “a higher unbilled revenue position which impacts the timing of cash inflow.”
TomTom, which is shifting its core business from selling devices to software as a service (SaaS), sold its telematics division to Japan’s Bridgestone (5108.T) in January in order to focus on its digital map-linked businesses.
The Amsterdam-based company said it booked a net gain of 807 million euros from the sale, which boosted its net income to 742 million euros.
Reporting by Camille Raynaud; Editing by Tomasz Janowski
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