Gently does it for FIS revenue rise
It’s a tale of small numbers with FIS’s latest financial results revealing a moderate rise for earnings and revenue.
In its first quarter, FIS’s GAAP revenue increased 3.4% to $2.2 billion from $2.1 billion in the prior year quarter. Operating income increased to $260 million for the quarter, from $184 million in the prior year quarter, while operating income margin was 11.5%. Net earnings from continuing operations attributable to common stockholders was $138 million for the quarter, or $0.41 per share compared to $0.17 per share in the prior year quarter.
Gary Norcross, FIS president and chief executive officer, says these are “strong results” and they “exceeded our expectations and provided us a solid start to the year”.
For the first quarter, organic revenue increased 1.7%. Adjusted EBITDA increased to $682 million for the quarter, from $637 million in the prior year quarter, while adjusted EBITDA margin was 30.2%. Adjusted net earnings from continuing operations attributable to common stockholders was $286 million for the quarter, or $0.86 per share compared to $0.79 per share in the prior year quarter.
If you’re thinking of looking ahead, well don’t. FIS says the “significant impact” of the $9.1 billion Sungard acquisition in 2015, “including among other things, the timing and amount of integration and severance costs, and the transition of systems, facilities and personnel, make it difficult to provide meaningful and comparable GAAP guidance”.
Last month, FIS sold its Swiss core banking software business, Ambit Private Banking, which it inherited with the acquisition of Sungard, to New Access Banking Software.
