News

FIS marks strong first quarter

April 30, 2013

Payments technology provider FIS has reported strong Q1 revenue gains, improving 4.6 percent on performance during the same period in 2012. The company restated its previous guidance, forecasting a 4–6 percent increase in annual revenues.

The company increased Q1 revenue from $1.4 billion last year to $1.5 billion this year. GAAP net earnings from continuing operations attributable to common stockholders rose to $148 million or 50 cents per diluted share for the quarter compared with $91 million, or 31 cents per diluted share during the same period in 2012.

"We are very pleased with our strong first quarter results," said Frank Martire, chairman and CEO of FIS. "We are consistently delivering on our financial targets and executing our strategy to optimize performance through organic revenue growth, margin expansion and double-digit increases in earnings per share."

FIS provided a discussion of first quarter year-over year results by segment:

Financial solutions — Q1 revenue increased 6.8 percent to $575 million, compared with $539 million in 2012. Growth was driven by consulting revenue, global commercial services and e-banking solutions.
Payment solutions — Q1 revenue increased 2.5 percent to $612 million compared with $597 million in 2012. Growth was driven by continued expansion in network solutions, electronic bill payment and output solutions. Check-related business declined from $108 million in 2012 to $104 million in 2013. Excluding check-related business, payment solutions revenue increased 3.8 percent.
International solutions — Q1 international solutions revenue increased 5.3 percent to $292 million compared with $277 million in 2012. Excluding an unfavorable currency impact of $15 million, revenue increased 10.8 percent on an organic basis, driven by growth across all major regions.
Corporate/other — Q1 corporate costs, as adjusted, totaled $117 million compared with $102 million in 2012. The increase was due primarily to higher investments associated with information security. Interest expense, net of interest income, declined to $52 million compared with $59 million in 2012. The effective tax rate was approximately 33 percent in Q1 2013 compared with approximately 34 percent in the first quarter of 2012.