War in Europe hurts Thales’ digital ID business in the first half, but not much
The ongoing invasion of Ukraine by Russia clipped tens of millions of euros in revenue from the Thales Group’s first-half financial report, but the multinational contractor still racked up growth.
Global sanctions on Russia cut revenue by about €100 million, mostly from Thales’ digital ID and security and aerospace segments. The company has not broken that down further.
The sanctions also have resulted in €51.7 million in non-recurring costs categorized as cost of sales.
Sales revenue in digital ID and security in the first half of 2020 rose to €1.6 billion across all geographic markets, compared to €1.4 billion during the first half of 2021. (Fiscal year 2021 itself was a good period.)
Thales as a whole recorded sales of €8.3 billion globally during the first half as compared to €7.7 billion during the same period last year.
Even relevant sales in Europe rose. They amounted to €492.6 million in the just-completed period compared to €411.9 million last year.
North American sales grew as well, reaching €511.4 million during the first half of this year, compared to €404.6 million.
Breaking global revenue between mature and emerging economic markets reveals growth as well.
Mature markets recorded sales of €1.6 billion in the most recent half, a health rise over €844.2 billion a year ago. Emerging markets (all areas but Europe, North America, Australia and New Zealand) rested at €593 million, compared to €525.4 million the year-ago period.
Thales’ digital ID business has had its share of high points this year.
It paid €100 million OneWelcome, which specializes in cloud-based ID services for industries that are tightly regulated.
The company also signed a contract with the government of Spain to supply 1,500 manual biometric border terminals.