TomTom earnings slip as users switch to smartphones
TomTom, Europe's largest maker of satellite navigation devices, reported a fall in fourth-quarter earnings and warned revenue this year would be lower as users swap dedicated devices for smartphones.
It reported a quarterly net profit of 3 million euros ($4.1 million), down 97 percent from a year ago, when TomTom benefited from a one-off tax gain, while quarterly revenue fell 7 percent to 268 million euros.
In 2014, the group expected full-year revenue of 900 million euros, against 963 million euros in 2013.
Analysts in a poll commissioned by Reuters had forecast a small quarterly net loss of 750,000 euros on revenue of 257 million euros.
Shares in TomTom were over 6 percent lower in opening trade.
The firm's CEO Harold Goddijn told CNBC that 2013 was a "good year" but the plan is to "go faster" in 2014, so the group can pick up growth in 2015.
"2014 will be a year where is a lot is happening, we are transforming our consumer business, as the ongoing decline of the PND (personal navigation devices) market is starting to be compensated by the new products," said Goddijn.
"We want to diversify into new markets including the sports market, so it will be an exciting year. We have seen tremendous growth and we have been disrupted, but I think we are positioned to grow with new innovation ways of creating maps," he added.
—By CNBC's Jenny Cosgrave: Follow her on Twitter