TomTom has adjusted its expectations for 2025 despite lower revenue in the first half of the year. The Amsterdam-based navigation company says it sees encouraging developments after a reorganization.
Revenue in the second quarter decreased by 4 percent to 146 million euros, TomTom reports. This brings the revenue in the first half of the year to 287 million euros, which is 2 percent lower than last year.
The company has been struggling with declining income from the automotive industry for some time. That industry is suffering from Chinese competition and decreasing demand for electric cars, among other things.
Yet, TomTom sees encouraging developments. The company had expected it to be a difficult year but now expects annual revenue between 535 and 565 million euros. Previously, the lower limit was 500 million euros. In 2024, revenue was still 574 million euros.
The company is investing in change to be able to work more flexibly and serve customers better. The largest part of the income comes from the sale of map technology to companies such as car manufacturers. The sale of separate navigation devices has been shrinking for years.
TomTom announced at the end of June that it would cut three hundred jobs, which amounts to almost a tenth of the total amount of personnel. The precise reason for the layoffs was unclear, but it was part of a reorganization that also took place because the company wants to embrace artificial intelligence.