TomTom auto recovery drives earnings beat, lifts shares

(Reuters) – Shares in Dutch mapping and navigation company TomTom jumped as much as 6% on Wednesday after it reported quarterly results ahead of analysts’ forecasts, boosted by strong automotive sales in a recovering industry.

FILE PHOTO: TomTom mapping system is seen inside a vehicle in Eindhoven, Netherlands, November 21, 2019. REUTERS/Eva Plevier/File Photo

The location technology company, whose customers range from major car companies to leading global tech firms, saw sales in its automotive unit, which supplies maps and navigation software to automakers, grow 19% year-on-year while earnings fell across its other businesses in the third quarter.

TomTom’s finance chief, Taco Titulaer, predicted further growth for automotive in the fourth quarter, citing improved car production as the sector recovers from global lockdowns that shuttered showrooms and brought traffic to a halt.

Industry data showed new European car sales down just 18% in August compared to the previous year, after

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