The Netherlands-based digital mapping company TomTom announced Thursday that its first quarter profits significantly exceeded expectations, even as the company experienced declining revenue following a major internal restructuring.
The company’s earnings before interest and taxes reached 13.8 million euros (approximately $16.3 million), surpassing analyst predictions of 7 million euros and nearly tripling last year’s first quarter figure of 5.7 million euros.
According to TomTom, the improved profitability resulted from enhanced profit margins and reduced operational costs following the completion of a company-wide reorganization in the previous year.
The digital mapping firm, which provides services to major clients including Microsoft, Uber, and Volkswagen, saw its revenue decline as anticipated due to transitions between existing and new customer contracts, which the company expects will continue to impact earnings throughout the year.
First quarter revenue fell to 129.2 million euros, down from 140.4 million euros in the same period last year, though the figure aligned closely with analyst forecasts of 130 million euros.
The company maintained its revenue projections for 2026, indicating confidence in its long-term business strategy despite the current transitional challenges.
