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TomTom reported revenue of €218 million in Q3 2017, down 9% on the same period last year.
The navigation and mapping products specialist also announced a downward revision in its expectations. Its now forecasting full-year revenue to come in at around €900 million in 2017, down €25 on its previous outlook. The company says this is mainly due to the recent reorganisation of its Consumer Sport division.
“Our strategy is to build on our leading position in providing navigation technologies to business customers. We are setting our priorities for the future, strengthening support for our growing B2B products,” said TomTom’s Chief Executive Officer Harold Goddijn.
“In the quarter, combined revenue of Automotive, Licensing and Telematics grew by 18% year on year and the gross margin that we generate as a Group improved from 60% to 65%.”
This follows last month’s news where TomTom announced it is laying off 136 staff and pulling back from the fitness and sports focused sector. Its wearables include the popular Spark 3 range and the Touch fitness tracker.
Essential reading: TomTom’s fitness tracker range detailed in full
Of the 136 rolls made redundant, 57 will be on its home turf in the Netherlands, while the remaining positions will be cut from offices in the US and Taiwan. A number of key figures left in an earlier round of firings back in December.
Founded in 1991, the Dutch outfit produces navigation and mapping products. It sells action cameras, fleet management systems and location-based products. The company is perhaps best known for its GPS software and products.
TomTom noted in that it will continue to sell consumer sports products, and support its existing customers. Its questionable, though, whether we will see new sports watches and fitness trackers in the near future.
For those interested, you can read the full third quarter results statement on this link.
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