Gemalto Reports Strong Growth from Identity, IoT, and Cybersecurity Activities in Fiscal Update

Gemalto has issued its year-end results for 2018, showing modest growth despite declining revenues from its removable SIM business activities.

The company reports revenues of €2,968,700,000 for the fiscal year, down slightly from 2017’s revenues of €2,971,700,000. But its net result, adjusted for the European Union’s International Financial Reporting Standards, came in at €211 million, up considerably from the net profit of €175.9 million reported for 2017.

Reflecting on Gemalto’s results in a statement, CEO Philippe Vallée said that they “reflect its success at implementing its strategic priorities”. While emerging eSIM technology has been draining revenues from Gemalto’s removable SIM activities, its overall Smartcards and Issuance business has been stabilized thanks to growing normalization of the EMV market in the US.

More importantly, Gemalto has seen strong growth in its Identity, IoT & Cybersecurity business, driven by “a dynamic Governments market, by the growing enterprise demand for cloud-based cybersecurity solutions and by the rapid expansion of IoT connectivity for industrial applications,” Vallée said. He added that further growth is expected in this area, with Gemalto’s leadership anticipating “strong demand for border management and biometric solutions” and a growing market for cloud-based cybersecurity solutions, with additional demand from the industrial Internet of Things market.

As for Gemalto’s proposed merger with Thales, the company reiterated in its statement that its leadership expects to obtain all necessary regulatory clearances in the current quarter, with the deal expected to close shortly thereafter.

February 14, 2019 – by Alex Perala