Oct 20 (Reuters) - Dutch satellite navigation and digital mapping company TomTom reported a bigger than expected drop in third-quarter revenue on Friday, as a strong growth in its service businesses failed to offset weakness in its consumer products division.
The company is betting big on higher margin services, such as the sale of maps and software to car makers, fleet management systems and technology for self-driving cars, after a fall in popularity of portable navigation devices.
The Amsterdam-based company’s revenue for the third quarter dropped by 9 percent to 218 million euros ($257.4 million). Analysts on average expected 225 million euros.
It reported a net loss of 5.3 million euros for the quarter, hit by a one-off restructuring charge of 15.4 million euros related to its consumer sports division, which includes running and golf watches.
The company also lowered its revenue forecast for the full year to about 900 million euros following the reorganisation of Consumer Sports. It had earlier expected revenue to come in at about 925 million euros. ($1 = 0.8470 euros) (Reporting by Michal Aleksandrowicz; Editing by Greg Mahlich)