Oberthur Technologies reported revenue for 2007, the first to consolidate the Card Systems
activity, previously Oberthur Card Systems and the activities of its parent
company, the fiduciary activities, previously Francois-Charles Oberthur
Fiduciaire (FCOF) and Oberthur Cash Protection, previously Axytrans,
following the execution of the merger on December 27th, 2007. Figures for
2006 & 2007 will be presented according to this new perimeter, in this
document and in the future.
In the appendix, the difference between the new organization and the
previous one is explained.
Fourth quarter 2007
Oberthur Technologies has reported 2007 sales of EUR200.5 million, up
6% on Q4 2006 largely as a result of sustained demand in Card Systems and
With EUR165.1 million sales, Card Systems reported a 7% growth compared
to Q4 2006 and a 11% growth compared to Q3 2007.
Card Systems delivered over 117 million microprocessor cards in the
last quarter of 2007, compared with 87 million in the last quarter of 2006,
or a 35% increase in volume terms. Revenue from this segment rose 13% to
– The mobile communications segment benefited again from favorable
market conditions, with substantial orders in all geographical regions.
Volume growth was significant in the Middle East, Africa and Russia. In
Europe, the growth relays in Eastern Europe added to sustained sales in
Italy this quarter.
Intensive commercial effort in South America is bearing fruit with an
80% increase in volumes in Q4 2007.
In Asia, volume growth remains strong, up 90% on 2006 with stable
average sales prices. Compared with Q4 2006, the ASP is up 13%. This is due
to the sale of I’M Technologies products, to price hikes for some products
and to an improvement in the product mix, especially in India.
The average sales price for the entire mobile communications segment is
stable compared with the previous quarter, with similar prices per product
line. The migration from 16K and 32K cards to higher-end products
continues. Compared with Q4 2006, prices have dropped by only 11% which
confirms the decrease in price pressure in 2007.
The product mix remains good in Western countries and is improving in
emerging countries. Overall, high-end cards (64K and higher) accounted for
69% of volumes compared to 67% in 2006.
Compared with Q4 2006, scratch card revenue is stable at EUR3.9 million
with 85 million cards sold.
Revenue from mobile communications as a whole (SIM cards, scratch cards
and solutions) is up 29% on Q4 2006 at EUR76.2 million and up 22% on Q3
2007, with a particularly strong seasonal impact on sales.
– 26 million payment microprocessor cards were delivered in Q4 2007, up
11% on Q4 2006 in volume terms, with sales of EUR30.9 million.
In Europe, demand is stable in France and sustained in the United
Kingdom and Italy where the migration to EMV continues. In the United
States, Q4 2007 saw the best performance of the year with almost a
three-fold increase in contactless card sales.
Conventional card sales are down, largely as a result of migration to
EMV and the spread of contactless technology.
Lastly, personalization services are up 11.5% on the previous quarter
with sustained sales in the United States and Europe.
Revenue from the payment segment as a whole (chip cards, magnetic
stripe cards and personalization services) amounted to EUR71.7 million in
the fourth quarter.
– Identity & Security Q4 2007 sales amounted to EUR17 million, down on
the previous year, but up 2% on the third quarter. Volumes are up 21% to
10.4 million units. Sales were particularly good in the pay-TV segment.
Conditions in current identity programs are still not favorable. However,
the group did win a significant contract in the identity segment in Asia at
the end of the year.
Fiduciary includes printing of banknotes, identity documents and
checks. The new production line set up in 2006, has meant new contracts for
Fiduciary and a strong 15% increase in sales between the second half of
2006 and the second half of 2007.
Q4 2007 revenue in this segment grew 8% on the previous year to EUR29.7
million, despite a temporarily unfavorable product mix in the last quarter
of the year.
Oberthur Cash Protection
Oberthur Cash Protection is active in the fledgling cash protection
market for cash-in transit and ATMs. It is already the world leader in this
sector with recurring contracts in France and Belgium and is also expanding
internationally. New pilot programs have been launched in Eastern Europe,
Africa and Latin America. This sector features long term projects that
start to bear fruit after several months of experimentation.
Revenue from this segment is up 40% on the previous quarter at EUR7
2007: a year of growth
In 2007, Oberthur Technologies broke new records in terms of volumes
and revenue. Sales grew 14% on 2006 to EUR733.4 million. Former Oberthur
Card Systems reported EUR591.4 million of sales.
Card Systems outperformed the market reporting a 13% increase in
revenue. Microprocessor card sales volumes grew 45% with 385 million units
delivered. Given a slightly easier competitive environment, the decrease in
sales prices slowed throughout the year. Microprocessor card 2007 revenue
grew 22% to EUR411 million.
The banking segment benefited from a pick-up in France and the United
Kingdom, two of its key markets. Revenue in personalization services is
stable. The company has continued to expand geographically with 6 new
personalization centers which will pay off in 2008.
As a whole this segment contributed EUR286.7 million or 49% of Card
Systems’ total revenue in 2007.
In mobile communications, SIM card revenue grew 22% to EUR223 million
in 2007, with 248 million units sold, or a 48% increase in volume terms.
Integration of I’M Technologies products bolstered growth in emerging
countries. Furthermore, the product mix continued to improve boosted by
migrations to higher-end products in both Europe and emerging countries. As
a result of this improved product mix and less pressure on prices, the
decrease in the average sales price has stabilized.
The mobile communications segment as a whole (SIM cards, Scratch cards,
Services & packaging) generated revenue of EUR243 million, contributing 41%
of Card Systems’ total revenue in 2007.
Like the rest of the industry, sales in Identity & Security were slower
than expected, with almost stable revenue up just 2%. Demand in pay-TV was
sustained but several identity programs have been delayed.
Fiduciary & Cash Protection
These two recently contributed businesses have reported a 17% increase
in 2007 revenue. Oberthur Cash Protection revenue is still small and was
stable this year. It was generated by existing contracts in France and
Belgium. Fiduciary reported a remarkable 21% increase in 2007 revenue,
boosted by production from a new banknote printing line set up in 2006.
H2 2007 results will benefit from sales growth and the margin
improvement action plan. Financial results will show a progression compared
to H1 2007 & H2 2006. Profitability should be significantly better for Card
Systems and should be confirmed at its existing good level for Fiduciary
and Cash Protection.
The card segment should continue to benefit from favorable market
conditions in the first quarter of 2008, particularly in mobile
communications. In the banking segment, demand is expected to be sustained
Fiduciary has more than twelve months’ visibility for orders and is
nearly at full capacity. In 2008 revenue should grow in line with the
market. New business in Identity should significantly boost growth.
In 2008, Oberthur Cash Protection’ sales from current contracts will be
stable. The company is deploying pilots in new countries.
Considering these conditions, 2008 should be a year of sustained growth
for the company.
About Oberthur Technologies
With sales of 733.4million Euros in 2007, Oberthur Technologies is a
world leader in the field of secure technologies. Innovation and high
quality services ensure Oberthur Technologies’ strong positioning in its
main target markets:
– Smart cards: One of the world’s leading providers of security and
identification based on smart card technology and associated services, such
as personalization, for the mobile, payment, identity, digital TV and
– Secure printing: The world’s third largest private security printer,
specializing in high security for the production and management of
banknotes, passports and other identity documents in more than fifty
– Cash protection: World leader in the emerging market of equipments
for smart cash transportation and ATM protection.
Close to its customers, Oberthur Technologies benefits from an
industrial and commercial presence across all five continents. Oberthur
Technologies is listed on the Eurolist section B stock exchange.
For complete details on Oberthur’s latest results visit CardData (www.carddata.com).