Gemalto said that its profit from operations will fall below guidance in the second half of the year, ranging between EUR 200 and EUR 230 million compared with its previous estimate in April of EUR 300-350 million. The company said that revenue for the second quarter declined 9 percent year-on-year at constant exchange rates, impacted by reduced demand for its Payment services in the American market and its SIM business internationally.
The deteriorated prospects for the removable SIM market are likely to result in a non-cash goodwill impairment charge of approximately EUR 420 million in the first half of the year, which should be confirmed when the company publishes its full results on 01 September. H1 profit from operations will be broadly in line with expectations at approximately EUR 93 million.
H2 revenues are expected to remain stable year-on-year, with a double digit decline for the Payment and SIM business lines offset by an improved performance in Enterprise, Machine-to-Machine and Government Programs.
