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TomTom's second-quarter sales slump as pandemic hits car business

Credit: REUTERS/EVA PLEVIER

July 15 (Reuters) - Dutch navigation and digital mapping company TomTom TOM2.AS on Wednesday posted a 41% drop in second-quarter sales as shop closures and travel reductions saw a serious decline in its consumer business, which sells portable navigation devices for cars.

The Amsterdam-based company, whose clients range from carmakers Ford F.N and Nissan 7201.T to tech firms Microsoft MSFT.O and Huawei HWT.UL, reported sales of 123.7 million euros ($140.94 million), in line with expectations.

The group did not provide a detailed outlook, but said it expected to generate positive free cash flow in the second

half of the year.

In April, TomTom had forecast a negative free cash flow and lower revenues in its automotive and consumer businesses in 2020.

($1 = 0.8777 euros)

(Reporting by Sarah Morland and Anait Miridzhanian in Gdansk Editing by Shri Navaratnam)

((Sarah.Morland@thomsonreuters.com; +48 58 778 51 10;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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