Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security today announces its revenue for the third quarter of 2016.
Philippe Vallee, Chief Executive Officer, commented: "Gemalto's revenue was stable over the first nine months of 2016. In the third quarter, Enterprise and Government Programs posted moderate revenue increases while Machine-to-Machine's growth accelerated. Payment and SIM sales were in line with the Company's expectations for the quarter. Gemalto expects to increase its gross margin by +1.5 percentage point through an acceleration of revenue growth towards the end of the year. From the current planning processes, Gemalto's 2017 profit from operations is expected to be between EUR 500 million and EUR 520 million, which corresponds to an annual expansion of around +10% since 2013. This outlook reflects a very adverse mobile environment and slower than anticipated migration of payment cards in 2017. It also takes into account plans for increased investments to capture growth beyond 2017 in Mobile Platforms & Services, Enterprise and Government Programs. Gemalto's Platforms & Services revenue objective of EUR 1 billion in 2017 remains unchanged."
General information
For the third quarter of 2016 total revenue came in at EUR 753 million, lower by (1%) at constant exchange rates. Payment & Identity, representing 62% of total Company revenue, posted sales of EUR 467 million, up +1% year-on-year.
Embedded software & Products revenue of EUR 522 million was (2%) lower compared to the same period last year due to lower sales to mobile network operators and to a lesser extent to financial institutions. Secure documents for Government Programs and wireless modules for Machine-to-Machine continued to record positive trends this quarter. The Platforms & Services activity, posted sales of EUR 231 million, was stable year-on-year due to client delays in project commencements for Mobile Platforms & Services, eGovernment services and Enterprise cybersecurity solutions this quarter.
Currency movements had a negative (1) percentage point effect on revenue growth in the third quarter of 2016. The hedging program, which aims at partially neutralizing the impact of currency variations on the Company's profit from operations, produced a 1 percentage point difference compared to the same period last year.
Revenue variations by region, at constant and historical exchange rates, are presented in Appendix 1.
Segment information
Payment & Identity
The Payment & Identity segment's revenue came in at EUR 467 million, increasing by +1% compared to the previous year.
Embedded software & Products revenue was stable at EUR 288 million. The segment's Platforms & Services revenue came in at EUR 179 million, up +2% compared to the same period last year.
The Payment business revenue came in at EUR 241 million, reduced by (3%) year-on-year. The Americas revenue was lower due to soft market environment in Brazil and to the high comparison basis in United States related to the EMV liability shift deadline a year ago.
The Enterprise business revenue increased to EUR 117 million, up +4% on the same period in 2015. The trend in revenue mix within the Authentication business line continues to move towards software and services. To meet the increasing market demand for cybersecurity solutions, the Enterprise business is continuing to increase its sales coverage, expanding Gemalto's network of technology partners and accelerating investment in R&D in order to strengthen the Company's offering in this growing sector.
The Government Programs business revenue was at EUR 109 million, up +9% year-on-year, with the increase coming from deliveries of previously won projects. During the third quarter, Gemalto also finalized the transformation of a production site in order to accompany the increase in project deliveries anticipated over the coming quarters.
Mobile
The Mobile segment posted revenue of EUR 285 million, (5%) lower at constant exchange rates compared to the third quarter of previous year.
Embedded software & Products revenue for the segment came in at EUR 234 million. SIM sales were lower by (11%) at EUR 152 million year-on-year, compared to the (16%) in the second quarter of 2016, with the improvement coming from slightly better conditions in Latin America and Asia. During the quarter, regulators of some countries in Africa also started to apply stricter subscription registration processes, similar to what is observed in the Chinese market with lower market demand. The Machine-to-Machine business grew by +11% year-on-year, at EUR 81 million and accelerating sequentially, supported by the expanding global demand of connected devices and embedded secure elements for the Internet of Things (IoT).
Platforms & Services revenue for the segment came in at EUR 52 million, reduced by (9%) year-on-year with slower project commencements due to longer client decision processes. During this quarter, Gemalto continues to progress with its Trusted Service Hub (TSH) offering by partnering Dai Nippon Printing (DNP) in Japan to offer issuers digital card provisioning and tokenization services for Apple Pay, which is transforming mobile payments with an easy, secure and private way to pay. Gemalto was also selected by Market Pay to load digital Carrefour payment and loyalty cards as well as by Valeo to provision and store virtual car keys securely into smartphones. The Company continues to work closely with both device manufacturers and mobile network operators on the GSMA specifications for embedded SIMs (eSIMs) and remote provisioning for primary devices in the consumer market, in order to best align and set up the ecosystem.
Patents & Others
Patents & Others revenue was EUR 0.7 million this quarter versus EUR 0.6 million during the same period in 2015.
Additional information
- Orange joins forces with Gemalto to launch the Samsung Gear S2, the first connected watch with a built-in SIM
Gemalto provides Orange with a secure platform which enables it to manage the customer's mobile subscription seamlessly and remotely, for the connected smartwatch with built-in SIM. This Gemalto solution complies with the first version of the specifications defined by the industry as a whole within the framework of the GSMA, an association of mobile operators and industrial players.
- Maryland unveils a new secure driver's license leveraging Gemalto's polycarbonate technology
Gemalto announces that the Maryland Department of Transportation's Motor Vehicle Administration (MVA) has begun rolling out its new secure and redesigned driver's license and identification (ID) card across the state. The polycarbonate-based driver's license gives Maryland residents a tamper-resistant credential that reduces document forgery and protects against identity fraud.
- TIM and Samsung launch the first smartwatch in Italy with integrated eSIM, in collaboration with Gemalto
Gemalto, TIM and Samsung, launched today the first smartwatch in Italy with an integrated embedded SIM (eSIM), representing the evolution of the SIM Card and mobile devices. Samsung's Gear S2 Classic 3G Smartwatch is the first wearable device in the world with eSIM, a technological innovation that marks a further step towards the set-up of the Internet of Things ecosystem.
- Posten Norge selects Gemalto ID Verification to strengthen fraud protection for Norway
Gemalto has won a major contract to supply Posten Norge, Norway's national post and logistics service, with its Coesys ID Verification solution that enables customer credentials such as identity cards and passports to be checked quickly and easily by branch staff. Coesys ID Verification will deliver a robust solution for the authentication of identification documents and allow Posten Norge to act as a highly efficient Know Your Customer (KYC) hub for the country's financial services sector, in line with the requirements of the latest EU Anti-Money Laundering Directive (AML4).
- Gemalto significantly expands big data security offerings
Gemalto announces a major expansion of its industry-leading SafeNet data protection portfolio that makes it easier for enterprises to protect big data deployments in the cloud, data center, and virtualized environments. Gemalto's SafeNet data encryption and tokenization solutions can now be used to secure data in the most widely used big data environments through technology integrations with leading providers including MongoDB, Cloudera, Couchbase, DataStax, Hortonworks, IBM, and Zettaset.
- Carrefour payment cards go digital thanks to Gemalto's proven Trusted Service Hub
Gemalto has been chosen by Market Pay, payment institution of the world's second biggest retailer, to deploy a mobile payment solution for its banking card. This project is part of a multi-channel strategy that leverages connected technologies to further enhance the shopping experience. Gemalto's Allynis Trusted Service Hub (TSH) will allow the customers to load a digital version of their existing banking card, as well as the retailer loyalty program, onto an Android phone, enabling easy and single customer journey at any NFC POS terminal.
- Gemalto releases findings of first half 2016 Breach Level Index
Gemalto, today released the findings of the Breach Level Index revealing that data breaches increased 15% in the first six months of 2016 compared to the last six months of 2015. Worldwide, there were 974 reported data breaches and more than 554 million compromised data records in the first half of 2016.
- Gemalto and Valeo partner to turn your smartphone into a secure car key
Gemalto has partnered with Valeo, one of the world's leading automotive suppliers, to ensure the security of its virtual car key system called Valeo InBlue(R). With Valeo InBlue(R), drivers can use their smartphone or connected watch to lock, unlock and start their car, control applications and remotely access useful vehicle data using Bluetooth(R).
- Norwegian national payment scheme BankAxept trusts Gemalto to enable mobile financial services for banks
Gemalto has been awarded a major contract by BankAxept, the national payment scheme of Norway, to enable all local banks to interconnect through a single credentials management hub for streamlined and secure management of mobile payments services.
Outlook
For 2016, Gemalto expects to generate a +1.5 percentage point gross margin increase through an acceleration of revenue growth in the fourth quarter.
From the current planning processes, Gemalto's 2017 profit from operations is expected to be between EUR 500 million and EUR 520 million, leading to a compound average growth rate of around +10% since 2013. This outlook reflects a very adverse mobile environment and slower than anticipated migration of payment cards in 2017. It also takes into account plans for increased investments to capture growth beyond 2017 in Mobile Platforms & Services, Enterprise and Government Programs. Gemalto's Platforms & Services revenue objective of EUR 1 billion in 2017 remains unchanged.
Live Audio Webcast and Conference call
Gemalto third quarter 2016 revenue presentation will be webcast in English today at 3pm Amsterdam and Paris time
(2pm London time and 9am New York time).
This listen-only live audio webcast of the presentation and the Q&A session will be accessible from our Investor Relations web site: www.gemalto.com/investors
Questions will be taken by way of conference call. Investors and financial analysts wishing to ask questions should join the presentation by dialing: (UK) +44 203 367 9456 or (US) +1 855 402 7762 or (FR) +33 1 7077 0934
The accompanying presentation slide set is also available for download on our Investor Relations web site.
Replays of the presentation and Q&A session will be available in webcast format on our Investor Relations web site approximately 3 hours after the conclusion of the presentation. Replays will be available for one year.
Calendar
The full year 2016 results will be reported on Friday March 3, 2017, before the opening of Euronext Amsterdam.
Stock Exchange Listing
Gemalto N.V. is dual listed on Euronext Amsterdam and Paris, in the compartment A (Large Caps).
Gemalto has also established a sponsored Level I American Depository Receipt (ADR) Program in the United States since November 2009. Each Gemalto ordinary share is represented by two ADRs. Gemalto's ADRs trade in U.S. dollar and give access to the voting rights and to the dividends attached to the underlying Gemalto shares. The dividends are paid to investors in U.S. dollar, after being converted into U.S. dollar by the depository bank at the prevailing rate.
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security, with 2015 annual revenues of EUR 3.1 billion and customers in over 180 countries. We bring trust to an increasingly connected world.
Our technologies and services enable businesses and governments to authenticate identities and protect data so they stay safe and enable services in personal devices, connected objects, the cloud and in between.
Gemalto's solutions are at the heart of modern life, from payment to enterprise security and the internet of things. We authenticate people, transactions and objects, encrypt data and create value for software - enabling our clients to deliver secure digital services for billions of individuals and things.
Our 14,000+ employees operate out of 118 offices, 45 personalization and data centers, and 27 research and software development centers located in 49 countries.
For more information visit www.gemalto.com, or follow @gemalto on Twitter.
Investor Relations
Winston Yeo
M.: +33 6 2947 0814
winston.yeo@gemalto.com
Sebastien Liagre
M.: +33 6 1751 4467
sebastien.liagre@gemalto.com
Corporate Communication
Isabelle Marand
M.: +33 6 1489 1817
isabelle.marand@gemalto.com
Media Relations Agency
Suzanne Bakker
M.: +31 6 1136 8659
suzanne.bakker@citigateff.nl
配信代行: JCN
Philippe Vallee, Chief Executive Officer, commented: "Gemalto's revenue was stable over the first nine months of 2016. In the third quarter, Enterprise and Government Programs posted moderate revenue increases while Machine-to-Machine's growth accelerated. Payment and SIM sales were in line with the Company's expectations for the quarter. Gemalto expects to increase its gross margin by +1.5 percentage point through an acceleration of revenue growth towards the end of the year. From the current planning processes, Gemalto's 2017 profit from operations is expected to be between EUR 500 million and EUR 520 million, which corresponds to an annual expansion of around +10% since 2013. This outlook reflects a very adverse mobile environment and slower than anticipated migration of payment cards in 2017. It also takes into account plans for increased investments to capture growth beyond 2017 in Mobile Platforms & Services, Enterprise and Government Programs. Gemalto's Platforms & Services revenue objective of EUR 1 billion in 2017 remains unchanged."
General information
For the third quarter of 2016 total revenue came in at EUR 753 million, lower by (1%) at constant exchange rates. Payment & Identity, representing 62% of total Company revenue, posted sales of EUR 467 million, up +1% year-on-year.
Embedded software & Products revenue of EUR 522 million was (2%) lower compared to the same period last year due to lower sales to mobile network operators and to a lesser extent to financial institutions. Secure documents for Government Programs and wireless modules for Machine-to-Machine continued to record positive trends this quarter. The Platforms & Services activity, posted sales of EUR 231 million, was stable year-on-year due to client delays in project commencements for Mobile Platforms & Services, eGovernment services and Enterprise cybersecurity solutions this quarter.
Currency movements had a negative (1) percentage point effect on revenue growth in the third quarter of 2016. The hedging program, which aims at partially neutralizing the impact of currency variations on the Company's profit from operations, produced a 1 percentage point difference compared to the same period last year.
Revenue variations by region, at constant and historical exchange rates, are presented in Appendix 1.
Segment information
Payment & Identity
The Payment & Identity segment's revenue came in at EUR 467 million, increasing by +1% compared to the previous year.
Embedded software & Products revenue was stable at EUR 288 million. The segment's Platforms & Services revenue came in at EUR 179 million, up +2% compared to the same period last year.
The Payment business revenue came in at EUR 241 million, reduced by (3%) year-on-year. The Americas revenue was lower due to soft market environment in Brazil and to the high comparison basis in United States related to the EMV liability shift deadline a year ago.
The Enterprise business revenue increased to EUR 117 million, up +4% on the same period in 2015. The trend in revenue mix within the Authentication business line continues to move towards software and services. To meet the increasing market demand for cybersecurity solutions, the Enterprise business is continuing to increase its sales coverage, expanding Gemalto's network of technology partners and accelerating investment in R&D in order to strengthen the Company's offering in this growing sector.
The Government Programs business revenue was at EUR 109 million, up +9% year-on-year, with the increase coming from deliveries of previously won projects. During the third quarter, Gemalto also finalized the transformation of a production site in order to accompany the increase in project deliveries anticipated over the coming quarters.
Mobile
The Mobile segment posted revenue of EUR 285 million, (5%) lower at constant exchange rates compared to the third quarter of previous year.
Embedded software & Products revenue for the segment came in at EUR 234 million. SIM sales were lower by (11%) at EUR 152 million year-on-year, compared to the (16%) in the second quarter of 2016, with the improvement coming from slightly better conditions in Latin America and Asia. During the quarter, regulators of some countries in Africa also started to apply stricter subscription registration processes, similar to what is observed in the Chinese market with lower market demand. The Machine-to-Machine business grew by +11% year-on-year, at EUR 81 million and accelerating sequentially, supported by the expanding global demand of connected devices and embedded secure elements for the Internet of Things (IoT).
Platforms & Services revenue for the segment came in at EUR 52 million, reduced by (9%) year-on-year with slower project commencements due to longer client decision processes. During this quarter, Gemalto continues to progress with its Trusted Service Hub (TSH) offering by partnering Dai Nippon Printing (DNP) in Japan to offer issuers digital card provisioning and tokenization services for Apple Pay, which is transforming mobile payments with an easy, secure and private way to pay. Gemalto was also selected by Market Pay to load digital Carrefour payment and loyalty cards as well as by Valeo to provision and store virtual car keys securely into smartphones. The Company continues to work closely with both device manufacturers and mobile network operators on the GSMA specifications for embedded SIMs (eSIMs) and remote provisioning for primary devices in the consumer market, in order to best align and set up the ecosystem.
Patents & Others
Patents & Others revenue was EUR 0.7 million this quarter versus EUR 0.6 million during the same period in 2015.
Additional information
- Orange joins forces with Gemalto to launch the Samsung Gear S2, the first connected watch with a built-in SIM
Gemalto provides Orange with a secure platform which enables it to manage the customer's mobile subscription seamlessly and remotely, for the connected smartwatch with built-in SIM. This Gemalto solution complies with the first version of the specifications defined by the industry as a whole within the framework of the GSMA, an association of mobile operators and industrial players.
- Maryland unveils a new secure driver's license leveraging Gemalto's polycarbonate technology
Gemalto announces that the Maryland Department of Transportation's Motor Vehicle Administration (MVA) has begun rolling out its new secure and redesigned driver's license and identification (ID) card across the state. The polycarbonate-based driver's license gives Maryland residents a tamper-resistant credential that reduces document forgery and protects against identity fraud.
- TIM and Samsung launch the first smartwatch in Italy with integrated eSIM, in collaboration with Gemalto
Gemalto, TIM and Samsung, launched today the first smartwatch in Italy with an integrated embedded SIM (eSIM), representing the evolution of the SIM Card and mobile devices. Samsung's Gear S2 Classic 3G Smartwatch is the first wearable device in the world with eSIM, a technological innovation that marks a further step towards the set-up of the Internet of Things ecosystem.
- Posten Norge selects Gemalto ID Verification to strengthen fraud protection for Norway
Gemalto has won a major contract to supply Posten Norge, Norway's national post and logistics service, with its Coesys ID Verification solution that enables customer credentials such as identity cards and passports to be checked quickly and easily by branch staff. Coesys ID Verification will deliver a robust solution for the authentication of identification documents and allow Posten Norge to act as a highly efficient Know Your Customer (KYC) hub for the country's financial services sector, in line with the requirements of the latest EU Anti-Money Laundering Directive (AML4).
- Gemalto significantly expands big data security offerings
Gemalto announces a major expansion of its industry-leading SafeNet data protection portfolio that makes it easier for enterprises to protect big data deployments in the cloud, data center, and virtualized environments. Gemalto's SafeNet data encryption and tokenization solutions can now be used to secure data in the most widely used big data environments through technology integrations with leading providers including MongoDB, Cloudera, Couchbase, DataStax, Hortonworks, IBM, and Zettaset.
- Carrefour payment cards go digital thanks to Gemalto's proven Trusted Service Hub
Gemalto has been chosen by Market Pay, payment institution of the world's second biggest retailer, to deploy a mobile payment solution for its banking card. This project is part of a multi-channel strategy that leverages connected technologies to further enhance the shopping experience. Gemalto's Allynis Trusted Service Hub (TSH) will allow the customers to load a digital version of their existing banking card, as well as the retailer loyalty program, onto an Android phone, enabling easy and single customer journey at any NFC POS terminal.
- Gemalto releases findings of first half 2016 Breach Level Index
Gemalto, today released the findings of the Breach Level Index revealing that data breaches increased 15% in the first six months of 2016 compared to the last six months of 2015. Worldwide, there were 974 reported data breaches and more than 554 million compromised data records in the first half of 2016.
- Gemalto and Valeo partner to turn your smartphone into a secure car key
Gemalto has partnered with Valeo, one of the world's leading automotive suppliers, to ensure the security of its virtual car key system called Valeo InBlue(R). With Valeo InBlue(R), drivers can use their smartphone or connected watch to lock, unlock and start their car, control applications and remotely access useful vehicle data using Bluetooth(R).
- Norwegian national payment scheme BankAxept trusts Gemalto to enable mobile financial services for banks
Gemalto has been awarded a major contract by BankAxept, the national payment scheme of Norway, to enable all local banks to interconnect through a single credentials management hub for streamlined and secure management of mobile payments services.
Outlook
For 2016, Gemalto expects to generate a +1.5 percentage point gross margin increase through an acceleration of revenue growth in the fourth quarter.
From the current planning processes, Gemalto's 2017 profit from operations is expected to be between EUR 500 million and EUR 520 million, leading to a compound average growth rate of around +10% since 2013. This outlook reflects a very adverse mobile environment and slower than anticipated migration of payment cards in 2017. It also takes into account plans for increased investments to capture growth beyond 2017 in Mobile Platforms & Services, Enterprise and Government Programs. Gemalto's Platforms & Services revenue objective of EUR 1 billion in 2017 remains unchanged.
Live Audio Webcast and Conference call
Gemalto third quarter 2016 revenue presentation will be webcast in English today at 3pm Amsterdam and Paris time
(2pm London time and 9am New York time).
This listen-only live audio webcast of the presentation and the Q&A session will be accessible from our Investor Relations web site: www.gemalto.com/investors
Questions will be taken by way of conference call. Investors and financial analysts wishing to ask questions should join the presentation by dialing: (UK) +44 203 367 9456 or (US) +1 855 402 7762 or (FR) +33 1 7077 0934
The accompanying presentation slide set is also available for download on our Investor Relations web site.
Replays of the presentation and Q&A session will be available in webcast format on our Investor Relations web site approximately 3 hours after the conclusion of the presentation. Replays will be available for one year.
Calendar
The full year 2016 results will be reported on Friday March 3, 2017, before the opening of Euronext Amsterdam.
Stock Exchange Listing
Gemalto N.V. is dual listed on Euronext Amsterdam and Paris, in the compartment A (Large Caps).
Gemalto has also established a sponsored Level I American Depository Receipt (ADR) Program in the United States since November 2009. Each Gemalto ordinary share is represented by two ADRs. Gemalto's ADRs trade in U.S. dollar and give access to the voting rights and to the dividends attached to the underlying Gemalto shares. The dividends are paid to investors in U.S. dollar, after being converted into U.S. dollar by the depository bank at the prevailing rate.
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security, with 2015 annual revenues of EUR 3.1 billion and customers in over 180 countries. We bring trust to an increasingly connected world.
Our technologies and services enable businesses and governments to authenticate identities and protect data so they stay safe and enable services in personal devices, connected objects, the cloud and in between.
Gemalto's solutions are at the heart of modern life, from payment to enterprise security and the internet of things. We authenticate people, transactions and objects, encrypt data and create value for software - enabling our clients to deliver secure digital services for billions of individuals and things.
Our 14,000+ employees operate out of 118 offices, 45 personalization and data centers, and 27 research and software development centers located in 49 countries.
For more information visit www.gemalto.com, or follow @gemalto on Twitter.
Investor Relations
Winston Yeo
M.: +33 6 2947 0814
winston.yeo@gemalto.com
Sebastien Liagre
M.: +33 6 1751 4467
sebastien.liagre@gemalto.com
Corporate Communication
Isabelle Marand
M.: +33 6 1489 1817
isabelle.marand@gemalto.com
Media Relations Agency
Suzanne Bakker
M.: +31 6 1136 8659
suzanne.bakker@citigateff.nl
配信代行: JCN
Industry: Media & Marketing , Electronics , Cloud & Enterprise , CyberSecurity , IT Individual , Wireless, Apps