FIS revenue rises in Q1 2016
FIS has revealed its first quarter revenue in 2016 increased to $2.2 billion from $1.6 billion in Q1 2015.
Organic revenue growth was 4.2% in the quarter. Adjusted EBITDA increased to $637 million in Q1 2016, from $589 million adjusted combined EBITDA in the prior year’s quarter, while the adjusted EBITDA margin was 28.2%.
Gary Norcross, president and chief executive officer, FIS, says the addition of solutions from the Sungard portfolio “significantly expanded” its margins. (FIS bought Sungard last year for $9.1 billion.)
Adjusted net earnings from continuing operations attributable to common stockholders was $259 million for the quarter, or $0.79 per share compared to $0.65 per share in Q1 2015, an increase of 22%.
Not everything went up. Generally accepted accounting principles (GAAP) net earnings from continuing operations attributable to common stockholders was $55 million, or $0.17 per diluted share, compared to $114 million or $0.40 per diluted share in the previous year’s quarter.
For FIS’s integrated financial solutions, first quarter revenue grew to $1.1 billion. Organic revenue growth was 5.4% in the quarter. Adjusted EBITDA increased to $426 million and the adjusted EBITDA margin was 38%.
In terms of its global financial solutions, Q1 2016 revenue increased to $990 million. Organic revenue growth was 4.4% in the quarter. Adjusted EBITDA increased to $251 million and the adjusted EBITDA margin was 25.4%.
FIS’s latest outlook for the rest of the year is no different to what it said at the start of 2016.
It anticipates an organic revenue growth of 3 to 4%; adjusted earnings per share from continuing operations of $3.70 to $3.80, an increase of 15 to 18% compared to $3.22 per share in 2015.