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.