T24 News
Temenos reports 16% revenue growth in Q3 and guides to full-year revenue growth of 5-14% - despite challenging environment
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Geneva, Switzerland, 13 October, 2011 – Temenos Group AG (SIX: TEMN), the market leading provider of core banking solutions, today reports third quarter 2011 results demonstrating robust performance.
Q3 Financial and Operating highlights
Total revenue growth +16%
Licence revenue flat despite tough comparative
Services revenue +15% y/y, loss continues to narrow; recovery on track
11 new banks signed for T24, including 2 Tier 1 banks
15 Go-lives, including 9 T24 and the first full Java T24 deployment
Commenting on the results, Temenos CEO Guy Dubois said, “I am encouraged by these results, given our very strong comparative base and the deterioration that we witnessed in the environment. In the face of macroeconomic headwinds, the company performed across all metrics. Licence revenues were broadly diversified across geographies, with a noticeable acceleration from Asia. While the services business remains a challenge, we continue to grow revenues and close the gap to profitability.
The lengthening of the decision making process which we witnessed in Q2 has deteriorated in the third quarter. As a result of this heightened uncertainty, we feel it appropriate to no longer guide on licence revenue and to revise our outlook range for total revenues for the full year 2011.
After my first quarter at the helm, I am convinced that the company has the foundations and the strengths to be the software solution of choice for the transformation of the banking industry.”
Revenue
Revenue for the third quarter was USD 120.9m, up from USD 104.0 m in the same period last year, representing an increase of 16%. Licence revenue for the quarter was USD 37.7m, flat vs Q3 2010. For the LTM 2011, total revenue was USD 496.3m, up 19% on LTM 2010, with LTM licence revenue at USD 165.9m, 16% higher than the same period last year.
Adjusted EBIT
Adjusted EBIT (EBIT before one-off restructuring charges of USD1m and amortisation of acquired intangibles of USD4.6m) was USD 23.8m, 19% lower than in Q3 2010 – a quarter characterized by unseasonably high comparables. Adjusted EBIT for the last twelve months was USD 106.3m compared to USD 102.6m in the prior period, representing a 4% increase. The adjusted EBIT margin was 20%, an decrease of 8 percentage points on the prior year, with LTM 2011 adjusted EBIT margin at 21%, 3 percentage points lower than in the prior 12 months.
Earnings Per Share (EPS)
Adjusted EPS, which excludes amortization of acquired intangibles and restructuring charges, was USD 0.26 in the quarter, a decline of 35% vs the same quarter of the previous year in which we achieved USD 0.40. The LTM adjusted EPS was 1.26, a decline of 9% on the previous 12 months.
Temenos publishes 2011 Interim Report
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Geneva, Switzerland, 29 September, 2011 – Temenos Group AG (SIX: TEMN), the market leading provider of core banking solutions, today publishes the 2011 interim report. This combines the full reporting from our Q1 2011 and Q2 2011 earnings releases, both of which have been previously made public on April 19, 2011 and July 27, 2011, respectively.
This press release is to inform you that the report is available on-line on our website under the following link:
http://www.temenos.com/Investor-Relations/Annual-Reports2/
ENDS
Banco de la Nación Argentina New York Selects TEMENOS T24
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T24 model bank to support US regulatory requirements
GENEVA, Switzerland – 24 August 2011 - Temenos (SIX: TEMN), the market leading provider of banking software, today announced that Banco de la Nación Argentina New York (BNA NY), a branch of Banco de la Nación Argentina, Argentina’s leading financial institution, will replace its core banking system with TEMENOS T24 (T24). The bank will initially deploy T24 in New York and three more of its international locations.
Temenos announces results of TCF survey
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Regulation Still Biggest Banking Fear
GENEVA, Switzerland, 3 August 2011: The implications of new regulations arising from the financial crisis continue to trouble banks the world over, according to the Temenos Community Survey by global banking software provider Temenos (SIX: TEMN). This is one of the key findings of the survey, conducted to understand global banking challenges, investment priorities and industry trends.
Gauging opinion from 190 banking executives across a range of banking sectors in 71 countries, the research confirmed that the impact of regulation remains the biggest challenge facing banks today, with 24 percent of respondents citing this as their primary concern. This finding is consistent with 2010 results, when 29 percent of respondents cited this as their biggest challenge and reflects concern over the impact that new regulation, like Basel III, is likely to have on their businesses.Other threats have continued to grow in importance among bankers this year. 23 percent of banks cited customer retention as their biggest challenge, up from 17 percent in 2010, as banks come to appreciate that customers are becoming less loyal, more discerning and have more alternatives than in the past. The challenge of retaining their best customers is felt most by private banks (30 percent) and larger banks (31 percent). This concern about customer retention is shared consistently across all markets.
Competition is also increasingly seen as a threat, with 18 percent of respondents citing it as the biggest threat facing the industry, compared to only 12 percent in 2010. The biggest perceived threats come from new entrants (mentioned by 30 percent of respondents), existing large incumbents (19 percent), overseas entrants (18 percent) and peer to peer services (15 percent).
The results also illustrate how banks’ perception of their biggest challenges is influencing corporate investment priorities. Banks named their top three investment areas as being: investment in new products and services, investment in IT and improving risk management. Looking at IT investment specifically, banks are making available more money, with 64 percent confirming that budgets were up on the previous year (compared to 53 percent in 2010), and 26 percent citing that these were significantly higher. The biggest budget rises were seen in the retail and wholesale segments and tier 1 and 2 banks and, as in prior years, the biggest areas of focus are: core banking renewal, risk management and business intelligence.
Ben Robinson, Director of Strategic Planning, Temenos, comments: “The fact that banks are unsettled by new regulations is not surprising given these are likely to weigh significantly on profitability and that their full effect and scope is still being determined. What is perhaps more interesting is the much greater collective concern about competition and customer retention compared with 12 months ago. This research suggests that, in an era of depressed margins, banks are worried about losing their best customers to competitors who can serve them better and their remaining customers to competitors who can service them more cheaply. In response, it is logical that banks should be planning to spend more on core banking software, as this is the most fundamental way for them to lower IT and back-office processing costs while generating the consolidated view of the business that will allow for better risk management and higher revenues”
Temenos gives Q2 trading update and revised full year licence outlook
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Geneva, Switzerland, 15 July 2011 – Temenos Group AG (SIX:TEMN), the market leading provider of core banking solutions, today issues an update on Q2 trading performance. Based on preliminary estimates, the company expects licence revenue for the quarter to be within a range of USD 38.5m – USD 39.5m. This licence range implies like-for-like growth of -2% to 1% and reported growth of 12% to 15%.
Given the company’s estimated licence performance in the first half of the year, coupled with an uncertain outlook for the remainder of the year, the company has chosen to revise down its full year licence outlook. Temenos now expects like-for-like licence growth of 5% to 10%, giving an implied range of USD 176m to USD 184m. This compares to previous outlook from 19% to 24% (USD 197m – USD 205m).
Commenting on the trading update, new Temenos CEO Guy Dubois states, “Currently, the uncertainty facing banks, particularly in Europe, is impacting their willingness to take decisions about large capital projects. As a consequence, we are seeing a longer sales cycle and we have taken the prudent decision to lower our full year licence outlook. Banks are deferring not cancelling decisions, and our competitive dynamics remain positive. Banks face several challenges including tougher regulation and increased competition which we believe will lead them to invest more in packaged applications to optimize their cost structure and grow revenues. In line with this, we see good pipeline build up and there is no reason at this stage to change the medium to long term view of our business and its prospects.”
The company will provide a full update on Q2 2011 results and the full year outlook on July 27th after the market close.
Metro Bank To Offer Mobile Banking Services With ARC Mobile
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Hawaii’s Largest Bank To Boost Wealth Management Business With WealthManager
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Temenos strengthens foothold in the US with latest signing
Temenos Community Forum, Lisbon, 24 May 2011 – Temenos (SIX: TEMN), the market leading provider of banking software, today announced that First Hawaiian Bank (FHB), Hawaii?s oldest and largest bank, will implement WealthManager, an industry leading front-office platform designed to achieve client centricity and give financial advisors a holistic approach to wealth management by consolidating portfolio and client data. Already a domestic market leader in retail banking, this will allow FHB to continue to grow its wealth management business by providing wealth advisors with a single, aggregated 360 degree customer view for best in class service delivery.
Temenos launches TEMENOS T24 (T24) for Oracle Exadata Database Machine
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Outstanding benchmark results show industry leading performance with new offering
Temenos Community Forum, Lisbon, 24 May 2011 – Temenos (SIX: TEMN), the global provider of banking software, today confirmed the availability of TEMENOS T24 (T24) for Oracle Exadata Database Machine by unveiling Temenos benchmark results demonstrating extreme levels of performance on the Oracle Exadata Database Machine. Temenos is also announcing the availability of T24 with Oracle Exadata in a combined, preconfigured core banking solution.
Temenos Launches Latest Release Of TEMENOS T24
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Showcasing T24 Enterprise – JAVA edition to target world’s largest banks
Temenos Community Forum, Lisbon, 23 May 2011 – Temenos (SIX: TEMN), the market leading provider of banking software, today announced the latest release of TEMENOS T24 (T24) R11 and the launch of a new componentised edition of the product, T24 Enterprise (T24E) Java Edition, specifically designed for the world's largest banks. T24E offers T24 banking functions restructured into discreet components based on the system's service orientated architecture (SOA) and is initially available as a Java deployment running under standard Java application servers. With T24E, banks can now implement the functionality they require, deploy a fuller range of functions in a progressive and phased manner and easily upgrade individual components based on specific operational requirements, for minimised migration risk and ease of integration.
Temenos unveils T24 Enterprise Java Edition on IBM’s System z
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New offering to drive higher performance and boost profitability for System z customers
Temenos Community Forum, Lisbon, 23 May 2011 – Temenos (SIX: TEMN), the global provider of banking software today launches T24 Enterprise Java Edition (T24E Java Edition), the new Java and component based version of TEMENOS T24 (T24) designed for use by the world’s largest banks. As part of this launch, Temenos unveils results of a major benchmark which illustrate the high performance of the new product running natively on IBM’s System z servers, fully exploiting the advancedfeatures that System z users benefit from today.