Gemalto chief talks growth - Mobile World Live

Gemalto chief talks growth

10 NOV 2016

Philippe Vallee, CEO of mobile security firm Gemalto, sought to reassure investors after a recent profit warning.

Speaking to Bloomberg, Vallee, who only took over the top spot from previous incumbent Olivier Piou on 1 September, talked up sales growth: “We expect an acceleration in the fourth quarter.”

“We see growth for our markets beyond 2017 — strong growth for some — and we aim to grow at least as fast,” he added.

In its Q3 results, Gemalto forecast a 2017 profit of between €500 million to €520 million, compared to its previous forecast of €600 million, disappointing investors.

Q3 revenue fell by 2 per cent to €753 million.

“This outlook reflects a very adverse mobile environment and slower than anticipated migration of payment cards in 2017,” Vallee said at the time of the profit warning.

“It also takes into account plans for increased investments to capture growth beyond 2017 in Mobile Platforms & Services, Enterprise and Government Programs,” he said.

Gemalto’s Platforms & Services revenue objective of €1 billion in 2017 remains unchanged, he said.

Vallee talked up growth prospects beyond 2017 too in his Bloomberg interview. Recent contracts wins include IoT security for Alibaba and mobile payments in Japan for Apple Pay.

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Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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