Big deals power Temenos profit and revenue rise
Temenos has reported a growth in total quarterly revenues by 9% and profit by 17% on the back of major banking tech revamps.
For its third quarter 2016 results, IFRS revenue for the quarter was $160.6 million, up from $145 million in Q3 2015. Non-IFRS revenue was $160.8 million for the quarter, up from $148.9 million in Q3 2015, representing an increase of 9% in constant currencies.
As part of this growth, Temenos CEO David Arnott pointed to its largest ever deal with Nordea, where the latter is going through a €1 billion technology overhaul in the Nordics, with Temenos’ T24 to be its new core banking solution and FIS’s (formerly Clear2Pay’s) Open Payment Framework (OPF) to be its new payments hub.
There were more positives as IFRS EBIT was $41.4 million for this quarter, up from $30 million in Q3 2015. Non-IFRS EBIT was $50.8 million in Q3 2016, an increase of 17% from Q3 2015 in constant currencies. Q3 2016 non-IFRS EBIT margin was 31.6%, up 2% points on Q3 2015.
IFRS total software licensing revenue for the quarter was $64.6 million, and non-IFRS total software licensing revenue for the quarter was $64.8 million, an increase of 5.5% from Q3 2015 in constant currencies.
The firm says the year-on-year growth was driven by the Standard Chartered Bank deal and “strong delivery” in Europe.
Not to be left out of the party, Temenos CFO and COO Max Chuard adds that its Bank of Ireland deal gave it to a “strong start” to Q4.
Looking to the future, Chuard says its guidance figures have changed – total software licensing to grow 15% to 20%, and for total revenues to grow between 12.5% and 14.5%.