Lower than expected revenues from activities in payments and SIM technology have prompted Gemalto to revise its 2017 outlook.
In a statement, the company said its Q2 revenues, at €742 million, are down nine percent compared to Q2 of 2016. As for its payments in the Americas and SIM businesses specifically, they have seen a “double digit decline” that Gemalto expects to continue for the rest of 2017. While revenue increases in other areas including Gemalto’s newly acquired 3M Identity Management Business will help to offset those declines, “the operating leverage of Payment and SIM businesses will not be realized as expected,” the company says.
Despite the setback, Gemalto has had a busy first half of 2017. The company announced a new authentication platform for online banking last month, saw its technology leveraged into a smartphone-based access control system, and was contracted for a Canadian biometric eID project, among other developments.
Gemalto says it anticipates a second semester profit from operations of between €200 million and €230 million, and that further details on its first semester will be made available in an official fiscal update on September 1st.