July 15 (Reuters) - Digital mapping specialist TomTom

suspended its financial targets for 2025 after a

wider-than-expected second-quarter operating loss on Monday, as

weak demand for new cars hit revenues in its key automotive

location technology business.

"A combination of downward revisions for near-term car

production volumes and delays in new model introductions has

resulted in a generally less predictable market environment,"

CEO Harold Goddijn said in the earnings statement.

New car sales fell 3% in Europe in May, compared to the same

period a year earlier.

Amsterdam-based company said it would not meet its 2025

guidance due to the lower automotive demand. It will provide new

targets for next year when it reports 2024 full-year results.

It had previously expected to reach 600 million euros ($654

million) of location technology revenues in 2025.

TomTom also expects its 2024 revenue to be at the lower end

of its previous 570-610 million euro guidance range, Goddijn

said.

The company posted a loss before interest and taxes of 5.2

million euros for the second quarter of 2024, versus a loss of

3.6 million euros in the same period last year.

Analysts on average were expecting a loss of 4 million euros

for the quarter, a company-compiled consensus showed.

In a separate press release, TomTom said it was deepening

and extending its collaboration with Microsoft ( MSFT ),

providing location technology across the U.S. group's solutions.

($1 = 0.9179 euros)