TomTom NV said Wednesday that it plans to buy back 50 million euros ($55.5 million) of its shares as the company reported a swing to net loss for the fourth quarter on lower revenue and higher costs.
The Dutch navigational-technologies company TOM2, -5.57% , which sold its telematics unit last year to focus on Location Technology, posted a net loss for the fourth quarter ended Dec. 31, 2019 of EUR69 million from a profit of EUR1.4 million for the same period in 2018.
Revenue for the quarter slipped to EUR156.2 million, from EUR174 million. Group revenue is forecast to be EUR650 million to EUR675 million for 2020, of which Location Technology is expected to generate EUR450 million to EUR475 million, TomTom said. Revenue for 2019 was EUR700.7 million, of which Location Technology generated EUR426 million.
The company’s Automotive backlog–a key performance indicator for the company–grew to EUR1.8 billion the company said.
“We are pleased with our 2019 financial results, in line with our latest guidance,” Chief Executive Harold Goddijn said adding that the board expect the Location Technology business to continue to grow this year.