Feb 4 (Reuters) - Digital mapping specialist TomTom

posted a 2% drop in its annual revenue on Tuesday,

slightly above estimates, and forecast lower 2025 earnings on a

continued slowdown in the automotive market, sending its shares

down 12.4% in early trade.

The Amsterdam-based company posted a revenue of 574.4

million euros ($591.17 million) for the year ended Dec. 31,

marginally above the 573 million euros expected in a

company-provided consensus.

The company, which makes 57% of its sales from automotive

location technology applications, has been impacted by a

slowdown in the global automotive market. New car sales in

Europe grew 0.9%, compared with a 13.9% jump in 2023.

Speaking on the sector headwinds, CEO Harold Goddijn said

"there are a lot of moving parts... more so than I've ever seen

before in my career."

TomTom suspended its 2025 location technology revenue

outlook in July 2024 and now says it has limited visibility for

2025.

The company, which counts Volkswagen, Toyota ( TM )

and Stellantis ( STLA ) among its customers, expects

2025 revenue between 505 million euros and 565 million euros.

It sees location technology revenue of 440 million-490

million euros, and free cash flow at break-even.

ING analyst Marc Hesselink sees the guidance as

"disappointing", adding it provides significant room for error.

The location data pioneer, which started by providing a

navigational tool for turn-by-turn directions, has gone through

major restructuring and is now developing self-driving maps that

integrate consumer data and driver assistance systems.

Goddijn says the transition to their new platform TomTom

Orbis was "painful" but underlines an endorsement from large

companies such as Microsoft ( MSFT ).

Their historical consumer business now accounts for 14.8% of

the group's revenue, after falling 10% in 2024.

"It is still a bit of life... still profitable", said

Goddijn, adding it is still their fastest route to volume,

feedback, testing and user concepts.

($1 = 0.9716 euros)