Dutch firm sees further revenue growth in 2023

AMSTERDAM: Dutch navigation and digital mapping company Tomtom said on Friday it expected revenue growth to continue in 2023, boosted by increased car production levels and new automotive contracts.

Ater being hit by a global chip shortage that disruptedtheautomotiveandelectronicsindustries, Tomtom is now starting to benefit from a recovery in global car production. “Pressures on supply chains are not gone away but they are reducing and there’s beter control”, Chief Executive Harold Goddijn told Reuters, pointing to positive effects from increasing car volumes and a ramp-up in market share gains. At 1000 GMT, Tomtom shares were up 8%. Increased car production volumes and a further rampupofsomecontractsledautomotivetogenerate revenues of 77 million euros in the quarter, an increase of 64% year-on-year, Chief Finance Officer Taco Titulaer said in a statement.

Thegroup,whosecustomersincludevolkswagen and Microsot, expects revenue growth to continue over the current fiscal year, with a strong increase in automotive revenues offseting declines in both its consumer and enterprise businesses.

“The electrification drive will also have a positive effect on take rates, as so far all electric cars that are being produced have maps and range calculations and those specific functions that are mandatory for a good EV experience”, Goddijn told Reuters.

The Amsterdam-based firm forecast revenue for 2023 in a range of 540 million euros to 580 million euros ($588.33 million-$631.91 million), with free cash flow of between 0% and +5% of the revenue, thanks to the positive impact of a change in revenue recognitiontimingfornewmapsubscriptionscontracts.