Navigation service provider TomTom succeeded in posting a net profit in the first three months of this year after periods of losses that preceded it.
The navigation technology of the Dutch company gained market share among car manufacturers, who also produced more cars. At the same time, TomTom benefited from cost savings from a previous reorganization that cost hundreds of employees their jobs.
Turnover increased by 10 percent to almost 141 million euros, with navigation technology for the car industry generating more than a third more than a year earlier. The sale of TomToms to private individuals, a branch steadily shrinking for years, yielded slightly less. The net profit amounted to 3 million euros, while a negative result of 21.5 million euros was recorded in the same period last year.
It is the first time since the second quarter of 2019 that TomTom has made a net profit again. Chief financial officer Taco Titulaer says this result is partly due to reduced costs following the “reshuffle” of the card development department. Most of the approximately 500 jobs TomTom cut were lost in this part because the company has automated much of this work.
TomTom was once synonymous with the physical navigation devices for motorists that the company made, but that branch came under pressure due to the popularity of Google’s free map service. TomTom now earns the most money by selling its map technology to car manufacturers who process the TomTom maps in the infotainment system.
In addition, the company also supplies data and software to other technology companies. For example, TomTom reports in its quarterly report that it has roped in the developer of an app for truck drivers, the German PTV, as a customer of its software package with navigation services.
