Gemalto Reports Full Year 2013 results

Gemalto announced its results for the full year 2013.

Revenue for all operations of the company reached €2.39 billion, up by 10% at constant exchange rates and by 6% at historical rates. All business segments contributed positively to growth with an especially strong improvement in Secure Transactions, which represented half of the yearly revenue increase. All regions increased their revenue, with a particularly strong performance in the Americas and Asia. Since the beginning of the 2010-2013 long-term development plan, revenue for all operations of the company increased by €735 million (€1,654 in 2009), or 44%.

“Gemalto closed its 2010-2013 development plan with €348 million in profit from operations, surpassing the plan’s profit expansion objective by close to 40%,” said Olivier Piou, CEO. “Excellent operational performance with our customers and tight cost control offset the adverse currency effects. The growth drivers in our markets remain in place and we have good momentum entering our new 2014-2017 development plan, having laid the foundations for a steady progression toward our long-term objectives.”

Across all segments, Platforms & Services activities grew by 21%, to account for revenue of €462 million in 2013, generating 36% of the total company growth and further increasing their share of the company’s revenue. Contributions from both the Mobile sector (subscriber services, trust infrastructure) and Payment & Identity sector (payment platforms, government projects, and authentication services) were similar in proportion.

Gross profit for the company was up 8%, or €72 million to €936 million, expanding in all segments. This represents a gross margin of 39.2%, higher by +0.7 percentage points compared to 2012. This gross margin improvement came from a better product mix in the Mobile Communication and Machine-to-Machine segments. Improvement in these two segments more than offset both the temporary impact of startup costs for new operations for Secure Transactions and Security that occurred during the first semester and the additional resources expended by Gemalto service delivery teams on the high contract backlog in Platforms & Services.