Dutch navigation and digital mapping company TomTom (TOM2.AS) reported worse-than-expected loss for the second quarter, citing high inflation and strained supply chains.
The Amsterdam-based company, whose products are used by major carmakers and leading global tech firms; posted quarterly operating loss of 55.5 million euros ($55.7 million), against analysts’ average forecast for loss of 20 million euros.
The group confirmed its 2022 outlook for revenue of 470 million to 510 million euros; but warned about uncertainties related to Russia’s invasion of Ukraine and increasing inflation.
The company, whose clients range from Volkswagen (VOWG_p.DE) and Renault (RENA.PA) to (UBER.N) and Microsoft , has been hit by the global chip shortage that has disrupted the automotive and electronics industries and forced automakers to slash production.
TomTom, which in June initiated restructuring of its maps unit, said the plan had impacted its operating expenses by 31 million euros in the quarter.
Net loss for the second quarter amounted to 55 million euros, missing analysts’ consensus by 35 million euros, while revenue was in line with estimates at 133 million euros.
-Reuters.
