Gemalto’s Payment business grew by +23% in 2015. 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 U.S.
Payment Embedded software & Products sales grew by +19% and Payment Platforms & Services revenue expanded by +40% compared to 2014 at constant exchange rates.
Gemalto’s Payment & Identity’s full year 2015 revenue came in at €1,818 million, increasing by +45% at constant exchange rates compared to 2014 and up +16% pro forma SafeNet.
The segment’s Embedded software & Products sales were up by +18% at €1,168 million and its Platforms & Services sales more than doubled to €650 million.
Revenue from the Enterprise business came in at €425 million in 2015 with expansion coming from the addition of SafeNet and from the sustained market demand for cybersecurity, software protection and software monetization solutions.
The alignment of authentication portfolios between the Identity Access Management business and SafeNet is on track. The trend in revenue mix in authentication and data protection continues to move towards a higher proportion of software and services, and to gross profit increasing faster than revenue. On a pro forma basis this evolution had led to a gross margin increase of +2 percentage points in Enterprise compared to 2014.
Revenue from the Government Programs business came in at €391 million, up +24% at constant exchange rates compared to 2014. Sales expansion came from delivery commencements of previously won projects while at the same time project backlog continued to expand, and from the €45 million contribution of Trüb AG, a Swiss provider of identification solutions acquired in the second quarter of 2015.
Government Programs Embedded software & Products revenue was up +19% and Government Programs Platforms & Services sales were up +44% in 2015 compared to 2014.
The steep business ramp-up in the United States led to an unusually high dedication of resources, yet the Payment & Identity segment gross margin as a whole improved to 38%, up +5.1 percentage points compared to 2014, due to the strong Platforms & Services expansion in the segment.
Operating expenses grew to (€460) million in 2015, in large part due to the acquisitions additions, and to a lesser extent to the currency translation effects as well as the shift of internal resources to the segment in order to effectively capture the rapid growth of its different businesses.
As a result profit from operations in Payment & Identity came in at €239 million, up +68% from the €142 million recorded in 2014, leading to a 13.1% profit margin from operations, up +0.9 percentage points.
4Q/14: 707 million euros
1Q/15: 686 million euros
2Q/15: 813 million euros
3Q/15: 769 million euros
4Q/15: 854 million euros
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