Friday, April 29th, 2016

AMSTERDAM - Gemalto, the world leader in digital security today announces its revenue for the first quarter of 2016.

Olivier Piou, Chief Executive Officer, commented: "The revenue for the first quarter 2016 illustrates the success of Gemalto's diversification strategy and the resilience of its business model. Strong performances in Government Programs, Machine-to-Machine, Enterprise and Payment have offset lower revenues from SIM and related services. We continue to focus our efforts and investment on our higher growth businesses, and confirm the improvement in our gross margin this quarter towards achieving our 2016 and 2017 objectives."

General information

For the first quarter of 2016, total revenue came in at EUR 691 million, up +1% at historical exchange rates and stable at constant exchange rates. Payment & Identity, representing 63% of total Company revenue, posted sales of EUR 433 million, up +17% year-on-year.

Embedded software & Products revenue of EUR 468 million was (8%) lower compared to the same period last year due to lower sales to mobile network operators and to a lesser extent to lower sales to banks in China. Embedded software & Products activity for Government Programs and Machine-to-Machine continued to show strong positive trends during the quarter. Platforms & Services activities, representing 32% of first quarter Company revenue, posted sales of EUR 222 million, an increase of +22% year-on-year, supported by the expansion in payment issuance services and data protection solutions.

The effects of currency movement in the first quarter of 2016 are minimal compared to the first quarter of 2015, resulting in a difference of less than 1 percentage point between revenue growth at historical and constant exchange rates. The hedging program, which aims at partially neutralizing the impact of sudden currency variations on the Company's profit from operations, produced a 0.1 percentage point difference compared to the same period last year.

The first quarter revenue of 2016 in the Americas region is stable compared to the same period in 2015. North America continued to grow despite the high comparison basis in Mobile sales last year, fully offsetting the soft market environment in Latin America. 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 433 million, increasing by +17% compared to the previous year.

Embedded software and Products revenue was up by +7% at EUR 261 million. The segment's Platforms & Services revenue came in at EUR 172 million, growing by +35% compared to the same period last year.

The Payment business grew +12% year-on-year, reaching EUR 233 million. The Americas continue to post the largest growth with strong sales of EMV payment cards and issuance services in the United States offsetting lower sales in Asia.

The Enterprise business revenue increased to EUR 103 million, up +14% on the same period in 2015. The trend in revenue mix within the business continues to move towards a higher proportion of software services.

The Government Programs business was up +34% versus a flat first quarter in 2015, at EUR 97 million. The revenue increase stems from strong deliveries of previously won projects in all regions, and EUR 6 million from the addition of Trub AG, acquired in the second quarter of 2015. 

- Mobile

The Mobile segment posted revenue of EUR 258 million, (20%) lower at constant exchange rates compared to the first quarter of previous year.

Embedded software & Products revenue for the segment came in at EUR 207 million. SIM sales were lower by (34%) at EUR 133 million due to the tail-end effect of the U.S. operators mobile payment service 2015 closing announced earlier and to lower demand in Latin America and Asia. The Machine-to-Machine business continued to grow, by +12% year-on-year on top of a strong +25% increase a year ago, at EUR 75 million driven by the expanding global demand of connected devices and embedded secure elements (eSE) for the Internet of Things (IoT).

Platforms & Services revenue for the segment came in at EUR 50 million, reduced by (9%) year-on-year as Mobile Financial Services revenue decreased year-on-year, also due to last year's U.S. operators mobile payment service closing.

- Patents & Others

Patents & Others revenue was EUR 0.4 million this quarter versus EUR 0.6 million during the same period in 2015. 

Additional information

- Finland selects Gemalto for its new secure electronic passport and eID
Gemalto has been chosen by the National Police Board in Finland to supply the country's new ePassport, which will enable secure and faster border crossings. The new travel document has advanced security features and is fully compliant with ICAO1 requirements. Gemalto is already responsible for Finland's polycarbonate electronic ID (eID) and resident permit cards. Under the new multi-year contract Gemalto will produce and personalize hundreds of thousands of Sealys ePassports and eID cards each year. These will be issued to citizens within days or even hours, via a convenient nationwide network of trusted retail outlets and delivery points.

- Gemalto releases findings of 2015 Breach Level Index
Gemalto released the latest findings of the Breach Level Index, revealing that 1,673 data breaches led to 707 million data records being compromised worldwide during 2015. The Breach Level Index (BLI) is a global database that tracks data breaches globally and measures their severity based on multiple dimensions, including the type of data and the number of records compromised, the source of the breach, and whether or not the data was encrypted. According to the Breach Level Index, more than 3.6 billion data records have been exposed since 2013 when the index began benchmarking publicly disclosed data breaches. 

- Gemalto and PROSA Partner to Offer Mobile Payments in Mexico
Gemalto and PROSA, one of the largest payment processors in Latin America, announce a partnership to bring mobile payments to Mexico. PROSA has operations in eight Latin American countries and will provide mobile payment services to all customers, which include 95% of credit, debit and prepaid card issuers in Mexico. Gemalto's Allynis Trusted Service Hub (TSH) enables easy new customer onboarding, which allows banks to swiftly launch their own NFC mobile payment wallets utilizing host card emulation (HCE). Another important feature of Gemalto's TSH is its ability to provision payment wallets from device manufacturers and mobile network operators as they launch in Mexico.

- Verizon certifies Gemalto's first Cat. 1 LTE M2M Solution for IoT
Gemalto announces its leading edge Cinterion(R) Cat. 1 LTE M2M module is Verizon certified to connect to the largest and most reliable 4G LTE network in the U.S. M2M and IoT device manufacturers currently using 2G or 3G technologies will now have a ruggedized industry connectivity solution for devices that require the performance and longevity of 4G networks. Machine to Machine (M2M) device makers leveraging the Verizon 4G LTE network have access to a future-proof Category 1 solution enabling highly efficient, cost optimized LTE connectivity and a quick go-to-market roadmap.

- Gemalto and Bridge Alliance, a partnership of 35 leading operators in Asia, demonstrate GSMA standards-based solution for multi-country deployment of IoT devices
Gemalto and Bridge Alliance demonstrated a solution for multi-country deployment of IoT devices at the Mobile World Congressusing Gemalto's LinqUs On-Demand Connectivity (ODC) subscription management solution. Bridge Alliance is a partnership of 35 leading operators in Asia Pacific, Middle East and Africa, serving over 750 million customers. This demonstration, based on the GSMA interoperable standards, shows how hermetically sealed M2M and IoT devices such as connected cars or smart meters can securely connect to any Bridge Alliance Member Operator using remote 'over-the-air' provisioning. 

- Gemalto and Jasper Partner to Simplify the Global Deployment of IoT Devices 
Gemalto and Jasper, a global Internet of Things (IoT) platform leader, today announced a partnership to simplify global deployment of IoT devices and services through on-demand subscription management. Integrating Jasper's IoT service platform with Gemalto's LinqUs On-Demand Connectivity removes the complexity of deploying connected services worldwide - for mobile operators, device manufacturers, and application providers. Customers can provision and manage subscriptions on devices remotely via a single embedded SIM (eSIM), resulting in more efficient and cost-effective deployment models while enabling rapid distribution and device activation.


For 2016, with the positive trends in Enterprise, Government Programs, Machine-to-Machine and the US EMV ramp-up effort completed, Gemalto expects to generate a +1.5 percentage point gross margin increase, accelerating its profit from operation expansion towards its 2017 objectives. 

Live Audio Webcast and Conference call

Gemalto first 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:

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 9457 or (US) +1 855 402 7762 or (FR) +33 1 7077 0939

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.


Gemalto N.V. will hold its 2016 Annual General Meeting of Shareholders (AGM) on Thursday, May 19, 2016 at the Hyatt Place Amsterdam Airport Hotel, Rijnlanderweg 800, 2132 NN Hoofddorp (Haarlemmermeer), the Netherlands at 2:00 p.m. CET.

The first semester 2016 results will be reported on Friday August 26, 2016, before the opening of Euronext Paris.

Stock Exchange Listing

Gemalto N.V. is dual listed on Euronext Amsterdam and Paris, in the compartment A (Large Caps). 

Mnemonic: GTO
Exchange: Dual listing on Euronext Amsterdam and Paris
Market of reference: Euronext Amsterdam
ISIN Code: NL0000400653
Reuters: GTO.AS 
Bloomberg: GTO:NA

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.

Structure: Sponsored Level I ADR
Exchange: OTC
Ratio (ORD:DR): 1:2
DR ISIN: US36863N2080
DR CUSIP: 36863N 208

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, or follow @gemalto on Twitter.

Investor Relations

Winston Yeo
M.: +33 6 2947 0814
[email protected]

Press Release (PDF):

Contact Profile

Winston Yeo

P: +33 6 2947 0814


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