Gemalto reported second quarter total revenue soared 35.3% to €813 million, compared to €813 million in the prior quarter and €601 million in the year ago quarter. For the first six months of the year, revenue growth in Payment jumped 22%, Machine-to-Machine increased 23%, and Government Programs rose 17%, at constant exchange rates, largely exceeds lower SIM products and related services revenue.
Gross profit was up by €156 million, to €574 million, representing a gross margin of 38.3%, up +1.4 percentage point year- on-year. The increase in gross margin in Payment & Identity came mainly from the Enterprise business and more than offset the lower contribution in Mobile due to the lower sales of product and services related to mobile payment in the United States.
Payment & Identity’s first semester revenue came in at €840 million, increasing by +43% compared to the same period in 2014. Embedded software & Products sales were up by +16% at €553 million. Platforms & Services sales more than doubled, at €287 million.
The Payment business grew by +28% in the second quarter of 2015 compared to the second quarter of last year. This strong performance led the +22% year-on-year revenue expansion for the first semester, at €469 million. The Americas posted the largest growth, with revenue almost doubling compared to previous year on strong sales of EMV payment cards and rapid expansion of issuance services in the United States. Payment’s Embedded software & Products sales grew by +19% and Payment’s Platforms & Services revenue expanded by +38% compared to the first semester of 2014.
The Mobile segment posted revenue of €641 million. Revenue grew by +9% at historical exchange rates and was lower by (2%) at constant exchange rates compared to the same period of previous year. At constant exchange rates, the most significant revenue expansion came from the Machine-to-Machine business, with a +23% increase in sales. The segment posted a contrasted pattern of revenue growth over the two first quarters, with a strong increase in the first quarter of +7% and a year-on-year reduction of (9%) in the second quarter. This evolution essentially related to the lower contribution to revenue of high-end SIMs and Mobile Platforms & Services sales in the United States due to the Softcard mobile payment service closing. The year-on-year unfavorable comparison basis will remain noticeable for the next three quarters.
Mobile Platforms & Services revenue was also influenced by the end of this US operators led mobile payment project, leading to a (1%) year-on-year revenue variation at constant exchange rates. On a global perspective, Gemalto Mobile Financial Services business reached important milestones during the semester, extending the connection of Gemalto’s Trusted Services Hub (TSH) offer to OEM’s embedded secure elements (eSE), Trusted Execution Environment (TEE), and to the payment applications that are using Host Card Emulation (HCE) framework. The Trusted Services Hub has also integrated this semester support for the newly standardized EMV tokenization layers, to become the market reference in terms of mobile device reach, integration capacity, and neutrality, all highly valuable benefits to domestic and global payment services.
Gemalto’s Mobile Subscriber Services business also reached an important milestone related to embedded SIMs this semester, with the adoption by the GSMA of a first common high-level architecture for remote activation and management of connectivity for the consumer market. Gemalto is deeply involved in this global interoperability effort, bringing its technical expertise and neutrality to help both OEMs and MNOs put in place solutions that best address their respective objectives and constraints.
Gross profit increased by €9 million, mainly due to currency translation effects, and gross margin was lower by (2) percentage points mainly due to the change in products and services mi
For data, background and forecasts on Active Accounts: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).
Q2/14: 601 million euros
Q3/14: 626 million euros
Q4/14: 707 million euros
Q1/15: 686 million euros
Q2/15: 813 million euros
Source: Gemalto; CardData
For data, background and forecasts on Gemalto: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items)