Netherlands based navigation and digital mapping supplier TomTom has reported a 41% year on year drop in second quarter 2020 sales.
Reuters said shop closures and travel reductions saw a plunge in the company's consumer business though it said it saw early signs of recovery.
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The group did not provide a detailed outlook, the news agency noted, but said it expected to generate positive free cash flow in the second half of the year.
TomTom, whose customers range from Ford and Nissan to Microsoft and Huawei, also reported a core profit of EUR7.3m (GBP6.61m), beating forecasts for a EUR17m loss in a company-provided poll cited by Reuters.
"While enterprise grew throughout, factory and retail closures hit trading conditions for automotive and consumer in April," chief financial officer Taco Titulaer said, adding businesses began to recover as lockdowns lifted in May and even more so in June.
Reuters said the group reported sales of EUR123.7m in line with expectations.
Revenue in TomTom's automotive segment – mapping services to automakers – fell 32% and by 68% in its consumer businesses which sells portable satnav devices through aftermarket channels.
However, Reuters added, the enterprise segment, which sells location technology to technology companies, government bodies and traffic management for location enabled applications, saw 5% growth.
TomTom had been moving away from selling consumer devices to offering digital map linked services for software applications, the report noted.
Last April, TomTom had forecast a negative free cash flow and lower revenue in its automotive and consumer businesses in 2020, Reuters said.
