Temenos’ Q1 2016 software licensing revenue up 51%
Temenos has revealed IFRS (international financial reporting standards) total software licensing revenue of $38.9 million in Q1 2016; and non-IFRS total software licensing revenue of $39.2 million – up 51% from Q1 2015 on a reported basis and 53% in constant currencies.
Temenos CEO David Arnott says this shows financial institutions “continue to embark on transformational IT renovation”.
He adds that the “digitisation trend and focus on costs are putting ever more pressure on banks to upgrade their IT platforms”.
Temenos CFO and COO Max Chuard says the refinancing it carried out in Q1 2016 has increased its “balance sheet flexibility for future growth opportunities”.
The vendor’s IFRS revenue for the quarter was $129.1 million, up from $102 million in Q1 2015. Non-IFRS revenue was $129.4 million for Q1 2016 up from $104.3 million in Q1 2015, representing an absolute increase of 24% and 26% in constant currencies.
For the rest of 2016, Temenos predicts non-IFRS total software licensing growth at constant currencies of 10% to 15% (“implying” non-IFRS total software licensing revenue of $234 million to $245 million).
For non-IFRS revenue, it anticipates growth at constant currencies of 7.5% to 11.0% (“implying” non-IFRS revenue of $594 million to $614 million).
T24 and more
In terms of activity, there have been several deals and go-lives this year for Temenos.
Bermuda Commercial Bank went live with its T24 core banking system (R13). The bank has also implemented Temenos’ business intelligence and analytics tool, Insight, and an AML solution.
Sudan-based Export Development Bank also went live with T24. The Islamic bank implemented R13 of T24 and received Temenos’ Insight Financials tool.