-- Revenue up by 12% at EUR 388 million -- Growth in the three main business segments -- New contracts in digital security services and solutions
Business Editors/Software Writers
AMSTERDAM, Netherlands--(BUSINESS WIRE)--April 24,2008--Regulatory News:
All revenue and average selling price variations in this pressrelease are by reference to 2007 first quarter and are stated atconstant exchange rates unless otherwise mentioned. For comparisons athistorical rates, refer to Appendix 3. All figures presented in thispress release are unaudited.
Gemalto (Euronext NL0000400653 - GTO), the world leader in digitalsecurity today announced its revenue for the first quarter of 2008:
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Year-on-year
Q1 2008 change
EUR in millions at constant
exchange rates
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Mobile Communication 223 +22%
Secure Transactions 101 +5%
Security 47 +14%
Public Telephony 8 (14%)
Point-of-Sale Terminals 8 (46%)
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Total revenue 388 +12%
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Olivier Piou, Chief Executive Officer, commented: "This strongfirst quarter gives us a good start for 2008. We are benefiting frombetter market conditions. Our three main business segments areperforming well and new contract wins for digital security solutionsillustrate the success of our strategy. We remain determined toachieve solid growth and profitability improvements in 2008"
First quarter 2008 revenue analysis
Total revenue for the first quarter of 2008 was EUR 388 million,up by 12% compared to the same period of 2007 supported by growth inall three main business segments.
Segment information
All variations are reported at constant exchange rates unlessotherwise stated.
Mobile Communication
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Year-on-year
Q1 2008 change
EUR in millions at constant
exchange rates
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Mobile Communication 223.4 +22%
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Mobile Communication reported particularly strong growth in thefirst quarter on 2008. A number of migration projects to high-end SIMcards capable of more advanced applications and services were rolledout. In addition software and service activity more than doubled whencompared with the same period of last year.
Average selling price increased by 2% when compared with the firstquarter of 2007, as product mix improved in all regions. When comparedto the fourth quarter of 2007, average selling price was lower by 9%reflecting the traditional shift in regional mix between the last andfirst quarter of every calendar year.
Gemalto continues to be involved in many NFC (Near FieldCommunication) trial programs with mobile operators such as Orange inFrance and Softbank in Japan. In February, Taiwan Mobile announcedthat it had selected Gemalto to provide the worlds first commercialNFC SIM-based mobile contactless system. This comprehensive digitalsecurity solution will enable Taiwan Mobile to register, issue, manageand terminate mobile NFC services over-the-air (OTA).
In Europe, Gemalto was selected by Dutch mobile operator KPN toprovide managed services in support of the launch of a European MVNO.This turnkey solution simplifies handset management, enhances operatorbranding and makes value-added services immediately available tosubscribers.
Secure Transactions
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Year-on-year
Q1 2008 change
EUR in millions at constant
exchange rates
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Secure Transactions 100.9 +5%
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This quarter confirms the return to growth of the SecureTransactions segment that had been impacted by a restructuring programduring the second half of 2007.
Growth in 2008 first quarter was driven by continued EMV (EuropayMasterCard Visa) standard expansion with various countries movingforward in Asia, Central Europe and the Middle East as well as LatinAmerica. Moreover, dual-interface EMV cards (contact and contactless)continue to gain market penetration, particularly in Europe and Asia.The good performance in our Payment activity, up by 12% from Q1 2007,more than compensated for lower Pay-TV and Transport revenue. Theincrease in revenue also resulted from a growing contribution inpersonalization services, up 29% from a year ago.
The success of Gemaltos innovative offerings was highlighted thisquarter with a contract signed by a leading Latin American financialinstitution for its Instant Issuance solution. It allows secure andrapid personalization and issue of new payment cards on-site,significantly improving consumer satisfaction.
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