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BRIEF-Gemalto says to book in H1 non-cash goodwill impairment charge of about 420 million euros
July 21, 2017 / 6:37 PM / 2 months ago

BRIEF-Gemalto says to book in H1 non-cash goodwill impairment charge of about 420 million euros

July 21 (Reuters) - GEMALTO:

* ‍BASED ON ITS PRELIMINARY H1 RESULTS, REVENUE FOR Q2 IS EUR 742 MILLION, LOWER BY 9% AT CONSTANT EXCHANGE RATES COMPARED TO SAME PERIOD OF 2016​

* ‍FOR FIRST SEMESTER, COMPANY PROFIT FROM OPERATIONS IS IN LINE WITH EXPECTATIONS AT APPROXIMATELY EUR 93 MILLION.​

* ‍Q2 DOUBLE DIGIT DECLINE FOR PAYMENT IN AMERICAS AND SIM BUSINESS IS ANTICIPATED TO CONTINUE FOR REST OF YEAR​

* SEES ‍A STABLE REVENUE YEAR-ON-YEAR FOR SECOND SEMESTER​

* ‍TAKING INTO ACCOUNT THESE REVENUE TRENDS, OPERATING LEVERAGE OF PAYMENT AND SIM BUSINESSES WILL NOT BE REALIZED AS EXPECTED.​

* ‍EFFECT OF TRANSITION PLAN ANNOUNCED IN APRIL IS ANTICIPATED TO START CONTRIBUTING MATERIALLY TOWARDS END OF YEAR​

* ‍ESTIMATES ITS 2017 SECOND SEMESTER PROFIT FROM OPERATIONS TO BE BETWEEN EUR 200 MILLION AND EUR 230 MILLION.​

* COMPANY IS EXPECTED TO BOOK A NON-CASH GOODWILL IMPAIRMENT CHARGE OF APPROXIMATELY EUR 420 MILLION IN H1 2017​

* EXPECTED TO BOOK A NON-CASH GOODWILL IMPAIRMENT CHARGE AS A RESULT OF DETERIORATED PROSPECTS FOR REMOVABLE SIM MARKET​ Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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