FILE PHOTO: the TomTom navigation system can be seen in the front view of the TomTom to display the logo, in this picture, the 28th of July 2017. REUTERS/dado Ruvic/File Photo
AMSTERDAM (Reuters) – TomTom, said on Tuesday its deals with automobile manufacturers, is worth about 1.6 billion euros ($1.76 billion), the Dutch navigation company will focus on accelerating the growth of the company’s revenue and is of the view that a share buyback program.
Earlier this year, the Amsterdam-based company said it would focus on the growth of the digital maps, the company, following the sale of the fleet management, to Japan’s Bridgestone for 910 million euro.
For an investor day on Tuesday, TomTom said it expected to increase revenue by location-based technologies, such as cards, by 10% each year until 2021, with the aim of accelerating growth in the years to come.
The company also said it would look at its cash position, next year, in order to decide on a possible share buyback program.
“We see great opportunities in it, is connected to the driver, navigation, autonomous driving and mapping applications, location-based applications are the most important components of the” Chief Executive Harold Goddijn said.
TomTom is a turning point and after Google broke into the market for the delivery of the cards to automobile manufacturers last year, striking deals with Renault and Volvo, and the breach of a duopoly between a TomTom, as well as the traditional, larger rival HERE.
The company said in July that it expected earnings of a location-based technologies, to increase to 435 million euros this year.
Report by Bart Meijer, Edit, and Sherry Jacob-Phillips and Louise Heavens