Gemalto first semester 2016 financial results

Dubai, UAE, August 29, 2016:  Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security today announces its results for the first semester 2016.

• Revenue of €1.5 billion, up +1% at constant exchange rates and stable at historical exchange rates 
• Revenue growth in Government Programs up +25%, Enterprise up +12%, Payment up +11% and Machine-to-Machine up +9%, at constant exchange rates, fully offsets lower sales to mobile network operators 
• Gross margin increases by +92 basis points, confirming 2016 outlook 
• Strong free cash flow generated, up +€128 million compared to first semester of 2015 

Olivier Piou, Chief Executive Officer, and Philippe Vallée, Chief Operating Officer, commented: “Gemalto progressed well in the first semester. The Payment & Identity segment saw another significant +14% growth, with all its businesses growing at double-digit rates, fully offsetting lower sales in Mobile segment. The Platforms and Services activity also posted a strong performance, with revenue up by +20% year-on-year, and on its way to reaching one year ahead of schedule the 1 billion euro yearly Platforms and Services revenue challenge we had set for ourselves in 2013. This further illustrates the success of the Gemalto’s diversification and the acceleration of its structural transformation. We will continue to focus our efforts and investment on our highest growing businesses, and are confident in a further increase in gross margin. Entering the last stretch of our current multi-year development plan, Gemalto will begin the planning processes which will define its next milestones.”