The Netherlands-based company TomTom said it expected a negative free cash flow this year with lower revenues from its automotive and consumer businesses, due to the ongoing COVID-19 pandemic.
The company had earlier said that it expected its 2020 free cash flow to be a mid to high single digit percentage of its revenue. The company also said it was not able to provide specific forecasts for 2020.
“Our Automotive revenue arises principally from customer vehicle sales, which are sharply impacted by factory closures,” TomTom’s chief executive officer, Harold Goddijn was quoted as saying by Reuters.
Gaddin further said that consumer revenues likely to be hit by a drop in demand because of retail store closures, retailers reducing the use of inventories, and people not driving.
TomTom’s first-quarter group revenue dips 23% to $143.7 million.
In its initial outlook, TomTom had said it expected its full-year revenue to fall around 5% year-on year.