Netherlands-based navigation and digital mapping company TomTom has said it expected a negative free cash flow in 2020 with lower revenues from its automotive and consumer businesses, in light of the impact from the coronavirus pandemic.
The Amsterdam-based company, which withdrew its original outlook in late March, had initially said it expected its 2020 free cash flow to be a mid to high single digit percentage of the group’s revenue. TomTom said it was unable to provide specific forecasts for the year.
“Our Automotive revenue arises principally from customer vehicle sales, which are sharply impacted by factory closures,” said TomTom’s chief executive officer, Harold Goddijn.
He added that consumer revenue would be hit by a steep decline in demand arising from retail store closures, retailers reducing inventories, and people not driving.
TomTom reported its first-quarter group revenue fell 23% to 131 million euros (approximately $143.7 million).
The company had said in its initial outlook it expected its full-year revenue to decline around 5% year-on year, coming in at between 650 and 675 million euros.
The team at Platform Executive hope you have enjoyed the ‘TomTom sees negative free cash flow as virus hits first-quarter sales‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Charles Regnier and Sarah Morland in Gdansk. Editing by Tomasz Janowski.