Gemalto profits rise on M2M diversification

Mobile communications and M2M player Gemalto has realized impressive gains in revenues and profit for the first half of 2013 thanks in part to a better product mix at its M2M division.

The company saw overall revenues increase by 11% over the same period of 2012, to €1.13 billion ($1.49 billion), while net profit rose by 9.3%, to €105 million.

“Gemalto [Amsterdam, Netherlands] recorded another strong semester of profitable growth, more than offsetting increased investments in operations made in the second part of last year,” said Olivier Piou, Gemalto’s chief executive.

Mobile communications and M2M player Gemalto has realized impressive gains in revenues and profit for the first half of 2013 thanks in part to a better product mix at its M2M division.

The company saw overall revenues increase by 11% over the same period of 2012, to €1.13 billion ($1.49 billion), while net profit rose by 9.3%, to €105 million.

“Gemalto [Amsterdam, Netherlands] recorded another strong semester of profitable growth, more than offsetting increased investments in operations made in the second part of last year,” said Olivier Piou, Gemalto’s chief executive.

“Over the period, our teams continued to deploy milestone programs and we are on track to meet our objectives for 2013,” he added. “The announcement next week of our new development plan will provide company’s stakeholders with Gemalto’s blueprint to leverage the expanding opportunities we have in front of us.”

Gemalto’s M2M business reported a 6% increase in revenues, to €96.6 million, thanks to strong demand for new commercial offerings in the automotive sector and other multi-service connectivity systems.

Meanwhile, the division’s gross margin rose to 34.2% of revenues from 32.7% in the year-earlier half, reflecting the improved portfolio of products and developments in the platforms and services area.

Last month, the company struck an important agreement with Kore Telematics [Alpharetta, GA, USA] that will see the US-based MVNO bundle Gemalto’s cloud platform with its managed-services offering.

Nevertheless, Gemalto’s mobile communications business remains the biggest contributor to overall sales, generating revenues of €505 million over the first half of 2013, 8% more than in the first six months of 2012.

The company said that growth accelerated in the second quarter, with “deployment of next-generation technologies [generating] strong organic expansion”.

Gemalto noted that recently acquired businesses contributed €9 million of the revenue increase recorded for the first six months of the year.

Owing to an increase in operating expenses, made to support activity in the platforms and services area, net profit at the mobile communications division rose by just 1.6%, to €70.5 million.