22 May 2017
Find out more

Banking unit drags down Misys in H1

14 January 2010  |  5964 views  |  0 Hourly Markets

Misys has reported an 11% fall in revenues at its banking unit for the first half, although the gloom was partially offset by more encouraging news at the firm's healthcare and treasury and capital markets divisions.

The UK IT vendor posted revenue of £361 million for the six months, up 29% on the same period the previous year. However, on a pro-forma, constant currency basis, revenue actually slipped one per cent to £363 million.

Operating profit was £61 million for the first half, up 11% on the same period the previous year. Net profit tumbled 61%, from £72 million in H1 2008 to £28 million.

Recurring revenues, from maintenance, ASP subscriptions and transaction processing, were 62% of revenue, up six per cent.

The Allscripts healthcare and treasury and capital market units both saw modest revenue gains and rising order intake. Yet this was offset by tough conditions at the banking division, where revenue was £79 million, down from £89 million in H1 2008 and total order intake tumbled 22%.

Mike Lawrie, CEO, Misys, says: "In the banking market post credit crisis, IT spending remains subdued and we are seeing banks shifting towards fee earning activities. We have renewed our product portfolio in response to this, and we see a growing pipeline for our new products in mobile banking, trade services, transaction banking and business intelligence."

However, Lawrie says the vendor's cost saving push will deliver operating margins within the target range of 18% to 20% for the full year, leaving him "confident" of meeting profit expectations.

Misys shares were down 4.2 pence, or 1.9%, to 216.7 pence in morning trading.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Misys banking division continues to feel the pain

Misys banking division continues to feel the pain

30 September 2009  |  7836 views  |  0 comments
City analyst talks up Misys break-up

City analyst talks up Misys break-up

29 September 2009  |  10554 views  |  0 comments
SocGen Securities Services deploys Misys Summit FT

SocGen Securities Services deploys Misys Summit FT

02 April 2009  |  10247 views  |  0 comments
Misys reports solid first half; CFO quits

Misys reports solid first half; CFO quits

09 January 2009  |  7099 views  |  0 comments
Misys reports solid Q1

Misys reports solid Q1

30 September 2008  |  4306 views  |  0 comments
Misys merger plans hit by Lehman fall-out

Misys merger plans hit by Lehman fall-out

17 September 2008  |  8521 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Download the paper nowvisit www.niceactimize.comvisit vasco.com/news/PSD2-compliant-solutions

Top topics

Most viewed Most shared
European banks lobby Commission to push ahead with screen scraping banEuropean banks lobby Commission to push ah...
8601 views comments | 29 tweets | 35 linkedin
Time for data-driven banking to come of ageTime for data-driven banking to come of ag...
8559 views comments | 28 tweets | 35 linkedin
Google and PayPal partner for mobile shopping by fingerprintGoogle and PayPal partner for mobile shopp...
8256 views comments | 27 tweets | 27 linkedin
Banks must get on AI bandwagon now – new Finextra researchBanks must get on AI bandwagon now – new F...
7952 views comments | 22 tweets | 29 linkedin
Twins fool HSBC voice biometrics - BBCTwins fool HSBC voice biometrics - BBC
7737 views comments | 19 tweets | 23 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job