Gemalto reports its optimization efforts paid off in the Mobile and Payment & Identity segments during the fourth quarter (4Q/16) resulting in the Company’s gross margin exceeding 40% for the first time in its history and leading to an improvement in both profitability and cash generation.
The Asia region posted the strongest growth, according to CardData.
Total revenue for 2016 came in at €3,127 million, up +1.2% at constant exchange rates and stable at historical exchange rates.
Payment & Identity’s full year revenue came in at €1,948 million, increasing by +9% at constant exchange rates compared to 2015. The Mobile segment recorded annual revenue of €1,174 million, (8%) lower year-on-year at constant exchange rates and historical exchange rates.
Gemalto reported fourth quarter gross revenue of €879 million, a gain of 2.6% YOY or 3.0% when adjusted for currency exchange (FX). For 3Q/16, Gemalto posted €753 million in gross revenue and €857 million for 4Q/15.
Payment & Identity revenue for the fourth quarter was €544 million, a gain of 6.7% YOY or 8.0% YOY FX. For 3Q/16, Gemalto posted €467 million in revenue and €510 million for 4Q/15.
Mobile revenue for the fourth quarter was €332 million, a decline of 1.8% YOY or down 2.0% YOY FX. For 3Q/16, Gemalto posted €285 million in revenue and €338 million for 4Q/15.
Revenue for the EMEA region posted at €402 million, an increase of 2.0% YOY, or 4.0% YOY FX compared to €338 million for 3Q/16 and €394 million for 4Q/15.
Revenue for the Americas region posted at €301 million, a decrease of 3.8% YOY, or down 5.0% YOY FX, compared to €284 million for 3Q/16 and €313 million for 4Q/15.
Revenue for the Asia region posted at €175 million, an increase of 19.0% YOY, or up 18.0% YOY FX, compared to €141 million for 3Q/16 and €147 million for 4Q/15.
For 2017, Gemalto expects its profit from operations to be between €500 million and €520 million supported by positive trends in Government Programs, Machine-to-Machine, Enterprise and taking into account the adverse mobile environment and slower migration of payment cards in the U.S.