Giesecke+Devrient continues on success course – increased revenue and earnings
Munich, April 17, 2018 – At €2.14 billion, the global security technology group Giesecke+Devrient (G+D) once again exceeded the record revenue achieved in the previous year, with a rise of more than 2%. The adjusted earnings before interest and taxes (EBIT) increased by 4% year-on-year, to €130 million. This means that G+D has more than doubled its EBIT within the last four years. All business sectors – Currency Technology, Mobile Security, Veridos, and secunet – have again made a positive contribution towards this result. G+D recorded a significantly higher net income of €67 million, a rise of 28% on the previous year.
“G+D achieved a very good result in the 2017 fiscal year. In our four core areas payment, connectivity, identities, and digital security, we are in the strongest position we’ve ever been,” said Ralf Wintergerst, CEO of Giesecke+Devrient. “With our solutions we help to ensure that the most valuable assets of a digital society – digital identities – are secure and protected.”
G+D Currency Technology GmbH far exceeded expectations in the 2017 fiscal year, and passed the €1 billion revenue mark for the first time in the company’s history. Revenue was €1017 million, up by 10% compared with the previous year. Key drivers of this increase were banknote processing business and the smart automation of the cash cycle.
secunet AG, a quoted company, adjusted its forecasts upward several times over the course of the record year of 2017, increasing its sales by 38% to more than €158 million. Alongside the sharp rise in sales in the SINA product family, external consultancy services also contributed strongly to growth.
Veridos GmbH further improved its order quality in 2017, and was able to significantly broaden its customer base. Revenue was €167 million, representing a decrease of 9%. This effect can be attributed to the scheduled run-out of a major project in Iraq, from which Veridos had benefited hugely in the previous year.
G+D Mobile Security GmbH was able to increase market share in the areas of electronic and digital payment, as well as in SIM card business. Slowing in the market, particularly in the USA, caused a slight fall in the sales trend of 6% to €812 million. Mobile Security saw great momentum in the product areas of eSIM management and mobile payment.
New engine for business development with the founding of “G+D Ventures”
In April, G+D also established the “G+D Ventures” proprietary company builder, based in Munich. The unit develops internal and external innovations for the establishment of independent companies, and also provides startups with access to the G+D network of experts and their vast knowledge. “We are constantly growing our portfolio. With the newly established ‘G+D Ventures’, we are investing in some highly promising internal and external ideas and startups,” explained Ralf Wintergerst.
G+D goes into the 2018 fiscal year with a solid order backlog, and expects further growth in sales compared with the record figure of the previous year. The operating result is expected to approach the high level of 2017. G+D sees growth potential in solutions for secure identification and authentication, as well as digital security. While the Currency Technology business sector is expected to maintain its high revenue figures, the company expects growth for Mobile Security in an improved market environment. Solutions projects and services are expected to help Veridos achieve significant sales growth. Following a record year in 2017, secunet is expected to consolidate its position with revenues around the level of the previous year. Several large orders also give particular cause for optimism; these include a Currency Technology order for Egypt which has a volume of more than €260 million. Veridos also has good prospects of winning several major orders in 2018.
“We’re confident about the current fiscal year and also want to see further growth in 2018. That doesn’t just mean increased sales, but also further improving the quality of our portfolio. That is why we will continue to work on structural improvements to the portfolio in all areas of our business,” commented Ralf Wintergerst.