Our segments

Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain and work – anytime, anywhere, and in ways that are convenient, enjoyable and secure – has become an integral part of what people want and expect. Gemalto meets these growing demands from billions of people worldwide by offering our services to the following segments:

Mobile communication

Solutions

  • A unique portfolio of solutions for Mobile Network Operators (MNOs) to help serve their subscribers.

Markets

Telecommunications: the world's leading supplier of SIM and UICC cards to the mobile industry, as well as client-server software and services. We deliver a vast range of solutions including roaming, mobile payment and data management to billions of customers via hundreds of operators.

intro-oursegments_mobile-graph

Revenue(*)

981m

(2009: €888m)

intro-oursegments_profit_securetransactions-graph

Profit from operations(*)

118m

(2009: €151m)

Highlights

  • Growth driven by software and services revenue doubling to €152 million.
  • Promising developments in new form factor products.
  • Profit margin profile of traditional SIM card unchanged.
  • Profit variation essentially resulting from operating expenses investment in fast growing software and services areas, consolidation effects of acquired businesses and exceptional items.

See Mobile communications for further details.

  • (*)
  • 'Our segments' financial information and highlights are based on adjusted financial inromation for ongoing operations.

Machine-to-Machine (M2M)

Solutions

  • Powering the “internet of things” with fully certified, high-quality M2M modules and terminals.
  • Highly durable Machine Identity Modules (MIMs) as well as support for integration, software and services.

Markets

M2M: the world's leading supplier of modules that connect machines to improve operations, productivity and efficiency. MIM: the leading supplier of MIMs, we provide three families of secure, durable and long-lasting modules. We also provide integration support for a broad range of industries worldwide, such as utilities and automotive.

intro-oursegments_m2m-graph

Revenue(*)

81m

intro-oursegments_profit_m2m-graph

Profit from operations(*)

7m

Highlights

  • Integration of Cinterion now essentially complete.
  • Solid 15% revenue growth (pro forma) driven by the increasing use of cellular connectivity by multiple industrial sectors.
  • Profit from operations doubled (pro forma), directly benefiting from the increased volume of sales, and customer confidence.

See M2M for further details.

  • (*)
  • 'Our segments' financial information and highlights are based on adjusted financial inromation for ongoing operations.

Secure transactions

Solutions

  • Innovative and secure payment solutions for financial institutions and retailers.
  • Rapid, convenient, contactless electronic ticketing (eTicketing) solutions for public transport.
  • Pay TV subscriber authentication and rights management solutions.

Markets

Financial services and retail: the leading player in this sector, we deliver a wide range of chip and contactless payment solutions and services to banks and other issuers with hundreds of millions of end-users. We also offer a range of mobile financial solutions. Transport: we provide eTicketing solutions to mass transit authorities. Pay TV: we offer a range of Pay TV solutions to secure access service providers.

intro-oursegments_securetransactions-graph

Revenue(*)

462m

(2009: €411m)

intro-oursegments_profit_securetransactions-graph

Profit from operations(*)

41m

(2009: €12m)

Highlights

  • Growth driven by worldwide migration to EMV and dual-interface contactless products.
  • The drag on growth, caused both by the UK triennial trough and the shift to standard mailing, faded in the second half as anticipated.
  • Significant improvement of gross margin as a result of better product mix and high personalization service activity.
  • Operating expenses increase in line with revenue after accounting for the impact of acquisitions.
  • The strong growth in the second half had excellent fall through to profit.

See Secure transactions for further details.

  • (*)
  • 'Our segments' financial information and highlights are based on adjusted financial inromation for ongoing operations.

Security

Solutions

  • Highly secure, durable identity products, solutions and services for governments.
  • Identity and Access Management (IAM) solutions including online authentication for many large public and private organizations, plus security solutions, including multi-factor authentication and transaction verification, for eBanking and eCommerce.
  • Licensing of our intellectual property rights.

Markets

Government programs: the world’s leading supplier of ePassports, we also provide secure electronic documents for eID, eHealth, eDriving license and other eGovernment initiatives, as well as services such as enrollment and issuance. Online authentication: we provide strong authentication solutions such as ID badges and their management for enterprises, governments, banks and other organizations, enabling them to better control access to their digital and physical resources. eBanking & eCommerce: our solutions let people bank and shop online and conduct transactions conveniently, with their privacy respected and secure from fraud.

intro-oursegments_securetransactions-graph

Revenue(*)

318m

(2009: €236m)

intro-oursegments_profit_security-graph

Profit from operations(*)

39m

(2009: €4m)

Highlights

  • 16% growth in Government Programs.
  • 50% growth in IAM due to strong activity in eBanking.
  • Patent licensing revenue above Company plan at €33 million, productivity gains and scale effect lead to 450 basis points gross margin improvement.
  • Operating expenses down 620 basis points to 28% of revenue.
  • The operational leverage combining strong growth, gross margin performance and operating expenses control lifts profit margin from operations margin 12.4% in 2010, and to 6.8% when excluding the patent contribution.

See Security for further details.

  • (*)
  • 'Our segments' financial information and highlights are based on adjusted financial inromation for ongoing operations.

Others

Solutions

  • Phone cards for public telephony operators.
  • Point-of-Sale (POS) terminals and services for retailers.

Markets

We sell a vast range of pre-paid cards and solutions for public telephony. At the end of 2010, our POS terminals business was sold to VeriFone (see Others).

intro-oursegments_securetransactions-graph

Revenue(*)

19m

(2009: €24m)

intro-oursegments_profit_others-graph

Profit from operations(*)

2m

(2009: €4m)

See Others for further details.

  • (*)
  • 'Our segments' financial information and highlights are based on adjusted financial inromation for ongoing operations.

Everyone knows what a SIM is – but do you know what a MIM is?

If a SIM (Subscriber Identity Module) identifies a person using a mobile phone, a MIM (Machine Identification Module) identifies a machine when it’s calling another machine. MIMs are used in the Machine-to-Machine (M2M) market, of which Gemalto is now the world leader.

Find out more