TomTom considers sale of sports watches, action cameras division (translated)
20 JUL 2017
TomTom [AMS:TOM2], the Dutch navigation tools company, is considering to sell its division producing sports watches and action cameras, the Dutch daily Het Financieele Dagblad reported, citing CEO, Harold Goddijn.
TomTom is disappointed in the results of the sports watches division and is exploring all options for its continuity, including a sale, the report said.
With the introduction of the sports division, four years ago, TomTom hoped it would boost the company’s growth. However, according to Goddijn, this market is no longer growing and TomTom is now risking that its sports division is taking the attention away from the company’s main activities which is not a part of the plan.
TomTom made a net loss of EUR 160m in the second quarter of this year with a turnover of EUR 253m due to the disappointing results of the sports division. For this year, the company expects a total turnover of EUR 925m to EUR 950m.
The exact value of the sports division was not reported. According to a report by the Dutch news broadcaster RTL, in 2014 TomTom had sold 500,000 sports watches.