Shock loss for Dutch TomTom
Dutch car navigation company TomTom made an unexpected net loss of 489 million euros in the second quarter of this year.
The loss was mainly the result of an accountancy write-off – or impairment charge - of 512 million euros. This expresses loss in the value of the company because of failing customer goodwill and other ‘intangible assets’ decreasing in value. TomTom is suffering because of the declining market in non-integrated car navigation systems.
The company has lowered its forecast for this year’s turnover. It now says that it will be between 1.225 and 1.275 billion euros. mw
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