TomTom Reports Net Loss of £870m
Date: Tuesday, February 24 @ 13:26:43 UTC
Topic:
 TomTom profits have nose-dived with the Dutch company reporting a £870m net loss this morning.
Although there was a pre-tax profit of £72m for the quarter, down 46% on the previous year, revenue fell 17% and they have written off Euro 1bn from the value of TeleAtlas which it purchased for Euro 2.9bn only a year ago.
Shares have fallen below £2.60 for the first time compared with their all time high of £59.00. TomTom are now admitting there is a possibility that the terms of its bank loans "could be breached".
TomTom CEO Harold Goddijn said, "Despite the tough market conditions TomTom traded profitably and was significantly cash generative in the quarter. We expect trading conditions to continue to be challenging throughout 2009 and we are adjusting our cost base accordingly."
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