Fiserv reports second quarter 2015 results
Internal revenue growth of 4 percent for the quarter; Adjusted EPS increases 17 percent to $0.95 for the quarter; Free cash flow increase of 11 percent year to date; Full year 2015 guidance affirmed
BROOKFIELD, WI (July 29, 2015) — BROOKFIELD, WI (July 29, 2015) — Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions, today reported financial results for the second quarter of 2015.
GAAP revenue in the second quarter was $1.30 billion compared with $1.25 billion in the second quarter of 2014. Adjusted revenue was $1.23 billion in the second quarter compared with $1.18 billion in the second quarter of 2014, an increase of 4 percent. For the first six months of 2015, GAAP revenue was $2.57 billion compared with $2.49 billion for the first six months of 2014. Adjusted revenue was $2.42 billion in the first half of 2015 compared with $2.33 billion in the same period in 2014, an increase of 4 percent.
GAAP earnings per share from continuing operations in the second quarter was $0.53, which included debt extinguishment and refinancing costs of $0.25 per share, compared with $0.65 in the second quarter of 2014. GAAP earnings per share from continuing operations for the first six months of 2015 was $1.26 compared with $1.31 for the first six months of 2014.
Adjusted earnings per share from continuing operations increased 17 percent in the quarter to $0.95 compared with $0.81 in the second quarter of 2014. Adjusted earnings per share from continuing operations in the first six months of 2015 increased 12 percent to $1.83 compared with $1.63 in the comparable 2014 period.
“We executed well in the quarter which led to solid financial results,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Our results for the first half of the year are in-line with our expectations, and reflect our commitment to delivering high-quality revenue growth, margin expansion and excellent free cash flow.”
Second Quarter 2015
Adjusted revenue grew 4 percent in both the quarter and first six months of 2015 to $1.23 billion and $2.42 billion, respectively, over the prior year periods.
Internal revenue growth in the quarter was 4 percent for the company, driven by 6 percent growth in the Payments segment and 2 percent growth in the Financial segment. Foreign currency negatively impacted internal revenue growth by approximately 60 basis points in the second quarter.
Internal revenue grew 4 percent in the first six months of 2015, led by 5 percent growth in the Payments segment and 3 percent growth in the Financial segment. Foreign currency also negatively impacted internal revenue growth by approximately 50 basis points in the first six months of 2015.
Adjusted earnings per share increased 17 percent in the quarter to $0.95 and increased 12 percent in the first six months of 2015 to $1.83 compared to the prior year periods.
Adjusted operating margin expanded 120 basis points to 31.8 percent in the quarter and 140 basis points to 31.5 percent in the first six months of 2015 compared to the prior year periods.
Free cash flow was up 11 percent to $439 million in the first six months of 2015 compared to $395 million in the prior year period.
The company repurchased 3.1 million shares of common stock in the quarter for $245 million and 6.9 million shares of common stock for $535 million in the first six months of 2015. As of June 30, 2015, the company had 12.9 million remaining shares authorized for repurchase.
In April 2015, the company entered into an amendment to extend the maturity of its $2.0 billion revolving credit facility to April 2020.
During the quarter, the company raised $1.75 billion of proceeds in a public offering of 5-year and 10-year senior notes with a weighted average interest rate and term of 3.3% and 7.6 years, respectively. The company primarily used the net proceeds from this offering to redeem its $600 million 3.125% senior notes due in 2016 and $500 million 6.8% senior notes due in 2017.
Outlook for 2015
Fiserv continues to expect 2015 internal revenue growth in a range of 5 to 6 percent and adjusted earnings per share in a range of $3.73 to $3.83, which represents growth of 11 to 14 percent over $3.37 in 2014.
“We remain on track to achieve our 2015 financial objectives which include our third consecutive year of accelerating internal revenue growth,” said Yabuki.
Earnings Conference Call
The company will discuss its second quarter 2015 results on a conference call and webcast at 4 p.m. CT on Wednesday, July 29, 2015. To register for the event, go to www.fiserv.com and click on the Q2 Earnings webcast link. Supplemental materials will be available in the “Investor Relations” section of the website.
About Fiserv
Fiserv, Inc. (NYSE: FI), a Fortune 500 company, aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500® Index and one of Fortune® World’s Most Admired Companies™. Visit fiserv.com and follow on social media for more information and the latest company news.
