TomTom said it expects annual sales from its location technology unit to reach the lower end of its forecast range of €490-520 million ($536-569 million), citing weak demand for new cars.
The satnav group reiterated its full-year revenue guidance at the low end of €570-610 million. The decline in global car sales has impacted TomTom, which derives a significant portion of its revenue from automotive location technology.
It has shifted focus to its new mapping platform, Orbis, as it faces a downturn in its consumer division caused by the upsurge in free mobile apps such as Waze,
The automotive market continues to weaken, with new car sales in the EU dropping 18.3% in August. In the third quarter, TomTom's revenue fell to €140.7 million, below analysts' expectations, though its losses narrowed year-over-year.