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TomTom says current car deals nearly $1.7 billion in revenue boost

TomTom says current car deals nearly $1.7 billion in revenue boost
FILE PHOTO: TomTom navigation are seen in front of TomTom displayed logo in this illustration taken July 28, 2017. REUTERS/Dado Ruvic -
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AMSTERDAM (Reuters) – TomTom said on Tuesday its current deals with car makers are worth about 1.6 billion euros (1.41 billion pounds), as the Dutch navigation company aims to accelerate revenue growth.

Earlier this year, the Amsterdam-based company said it would focus on growing its core digital maps business after it sold its fleet management business to Japan’s Bridgestone for 910 million euros.

Ahead of an investor day on Tuesday, TomTom said it expected to grow its revenue from location technologies, such as maps, by 10% per year until 2021, with the ambition to accelerate growth in the forthcoming years.

“We see great opportunities in connected driver navigation, autonomous driving and maps applications, where location-based applications are key components,” Chief Executive Harold Goddijn said.

TomTom faces a turning point after Google broke into the market to supply maps to carmakers last year, striking deals with Renault and Volvo and upsetting a duopoly between TomTom and its traditional larger rival HERE.

The Dutch company said in July that it expected revenue from location technologies to increase to 435 million euros this year.

(Reporting by Bart Meijer, Editing by Sherry Jacob-Phillips)

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