Data security firm Gemalto's revenue rises on strong U.S. demand

Reuters News
Posted: Oct 28, 2015 7:19 PM

(Reuters) - Digital security company Gemalto NV <GTO.AS> said third-quarter revenue grew 23 percent as sales rose at its payment and identity business and its acquisition of U.S.-based SafeNet boosted demand from the United States.

The company said revenue rose to 769 million euros ($850 million), with its payments and identity business growing 51 percent on a constant-currency basis to 469 million euros.

Gemalto bought SafeNet in 2014 for $890 million to broaden its data security operations and expand its customer base in the United States.

The strong U.S. dollar and the U.S. accounting for a larger share of total revenue as a result of the SafeNet acquisition added 9 percentage points to revenue growth in the third quarter, Gemalto said.

Revenue at the company's mobile segment fell 17 percent on a constant-currency basis to 299 million euros, due to lower demand in Latin America and Asia, and the closure of the U.S. operators mobile payment service.

(Reporting by Ramkumar Iyer in Bengaluru; Editing by Alan Crosby)