(Unaudited) In € millions | H1 2015 | H1 2016 | Change |
Licences | 5.4 | 5.9 | +9% |
Maintenance – Support | 6.9 | 7.6 | +10% |
Total Software Revenues | 12.3 | 13.4 | +10% |
Services | 3.9 | 4.2 | +7% |
Hardware | 5.7 | 3.3 | -43% |
Total revenues for the semester | 21.9 | 20.9 | -4% |
Total Gross Margin for the semester | 17.3 | 18.2 | +5% |
DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today revenues (unaudited) for its first half-year ended June 30, 2016.
Overall software revenues (comprising licences and support revenues) were up 10% over the first six months of the year. The growth differential in this line of revenue between Q1 (+25%) and Q2 (-2%) is due to revenue recognition in the first quarter of 2016 for several overdue maintenance contract renewals, whereas in 2015 similar late support-contract revenue recognition occurred in Q2.
Growth in software revenues resulted from new projects from leading broadcasters and content producers, in particular in North America and Asia-Pacific, and from the continued increase in recurring support, due to the year on year growth of the installed base.
Service revenues (integration, configuration and training professional services) were up 7% compared to last year's first half. Hardware resale, which is a low margin, non strategic business for Dalet, diminished significantly (-43%), as H1-2015 included a one-off exceptionally large contract signed with an operator which entrusted its entire infrastructure to Dalet.
As a direct consequence of the decrease in hardware resale, total consolidated revenues for the semester were down by 4% at €20.9 million. However gross margin (defined as sales minus cost of goods and third-party services resold) increased by 5% at €18.2 million, reflecting the more favorable sales mix. Gross margin rate increased to 87% of revenues over the first semester of 2016 up from 79% for the same period in 2015.
Broken down by geographic region, the Group's earlier investments in Asia Pacific have delivered a revenue increase of 20% at €2.9 million (14% of total revenues for the semester). Europe (€9.2 million revenues) remains the largest zone in terms of revenues at 44% compared to 49% in H1-2015. After neutralizing the unfavorable base effect linked to the low-margin hardware sales in H1-2015, business in Europe remains on a positive trend. Revenues for the Americas increased slightly at €8 million, rep