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TomTom loses its way in sales slump

TomTom loses its way in sales slump
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Free navigation software for smartphones continues to slam the profits of GPS maker TomTom.

It has just reported a 76 percent drop in fourth-quarter net profit as demand for its navigation devices plummeted.

The Dutch firm — which sees a further decline in sales this year — said it would focus on selling its real-time traffic services through its internet-connected devices and smartphone apps.

That includes mapping data for businesses, as well as navigation units which are built into cars, including various Renault, Fiat and Mazda models.

Chief Executive Harold Goddijn said those areas provide the greatest potential to grow, and it intends to strengthen its position as a provider of fleet management services, built-in navigation units, and digital maps.

TomTom reported fourth-quarter net profit of 12 million euros, close to analysts’ forecasts for 13 million euros. Group sales fell 31 percent, while sales of consumer personal navigation devices tumbled 40 percent.