TomTom posts drop in revenue due to semiconductor shortage
By Jenny McCall
10:41, 14 October 2021
TomTom, a Dutch multinational developer and creator of location technology and consumer electronics has reported a loss in revenue in its third quarter statement.
Group revenue decreased by 14% to €127.5m (£107.9m), compared with the same period last year, which saw revenue at €147.9m (£125.2m).
Revenue drop
Location technology, which includes GPS devices, fell by 10% to €95.4m, versus the same period last year which saw the figure at €105.6m. The group said the main driver for its decline in revenue was due to the semiconductor shortage, which led to supply chain issues and limited car production volumes and automotive revenue.
TomTom CEO Harold Goddijn said: “The first nine months of 2021 have delivered both positives and negatives. Enterprise continues to perform solidly. But the recovery of automotive has lagged expectations because industrywide semiconductor supply chain issues are hampering car production volumes.”
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“Encouragingly, the way we engage with our customers is evolving from a traditional supplier relationship to a partner approach. This is leading to longer-term partnerships, customer intimacy, productive software engineering collaborations and better products.”
The group announced the launch of the new Jeep Grand Cherokee and Jeep Compass, which includes full stack navigation technology.
TomTom’s stock price was up 0.94% at €6.48 in morning trading today.