The Dutch company TomTom still makes more than half a billion in sales

You probably remember TomTom. Almost every motorist had a portable navigation system in their car. They were so popular themselves that burglars took them out of cars en masse. Although hardly anyone uses the brand’s portable navigation systems, the Dutch company was able to convert 536 million euros last year.

TomTom’s first separate navigation box was launched in 2002 and quickly became a success. After Google Maps and alternative apps swallowed up a large part of the market, TomTom has completely disappeared from the consumer’s perspective.

TomTom has more than half a billion euros in sales

But how can TomTom still generate so much revenue? The Dutch brand sells maps and navigation services to car manufacturers. The customer base includes brands such as Volkswagen, Renault, Hyundai and Peugeot.

Even if you no longer have a TomTom navigation system taped to your window, you may be using the Dutch company’s services without noticing.

103 million euros loss

Compared to the previous year, TomTom’s sales increased by 6 percent. While this sounds positive, it does. The company no profit. In fact, 2022 ended with a net loss of almost 103 million euros. A year earlier, this loss was 95 million euros. The loss is partly due to restructuring costs.

TomTom announced in June last year that it would cut hundreds of jobs in its mapping division as a lot more would be automated.

The manufacturer of navigation systems and navigation software expects further sales growth this year from sales to automobile manufacturers. A further decline is expected in the consumer sector. It remains to be seen whether the reorganization and more sales to companies will result in green numbers. The fact is, there’s a lot more competition – particularly in the consumer market – than there was 15 years ago.