By Joe Hoppe
TomTom, the leading mapmaker, saw its shares increase on Monday following the announcement of strong revenue growth in the second quarter. The company’s location technology business performed exceptionally well, prompting an upward revision of its full-year revenue guidance.
At 0723 GMT, TomTom shares were up by EUR0.57 or 8% at EUR7.77.
During the second quarter, the group’s revenue experienced an impressive 18% rise, reaching 157 million euros ($176.3 million). This growth was mainly driven by the continued momentum and strong performance of the location technology business.
In the first half of the year, TomTom reported a 14% increase in revenue to EUR297.3 million. This growth was largely attributed to a 27% surge in location technology revenue amounting to EUR246.2 million, as well as a 1% rise in consumer revenue totaling EUR51.0 million.
Buoyed by these positive results, the company has revised its revenue and free cash flow guidance. It now expects full-year revenue to be between EUR570 million and EUR600 million, compared to EUR536 million in 2022. Previously, TomTom had projected revenue figures between EUR540 million and EUR580 million for 2023.
TomTom also provided updates on its ongoing roll-out of new maps. The process is progressing according to schedule and is set to unlock increasingly sophisticated features, faster update cycles, and broader geographical coverage.
