Fiserv revenue rises in Q1 2016
Fiserv has reported adjusted revenue of $1.25 billion in the first quarter of 2016 compared with $1.19 billion in Q1 2015, an increase of 5%.
Its financial results reveal nothing specific about the word “profit”, but a Fiserv spokesperson says: “We do disclose our profit in our earning results. We reported adjusted earnings per share of $1.06 and adjusted operating income of $399 million – or adjusted operating margin of 31.9%.”
GAAP revenue also went up in the quarter – $1.33 billion compared with $1.28 billion in the first quarter of 2015.
Jeffery Yabuki, president and CEO of Fiserv, says the start of the year included 7% internal revenue growth in the payments segment and “excellent” operating performance.
In addition to this, internal revenue growth was 4% for the company and 1% growth for the financial segment.
Adjusted earnings per share increased 19% in the quarter to $1.06 compared with $0.89 in the prior year period.
Fiserv continues to expect 2016 internal revenue growth in a range of 5 to 6% and adjusted earnings per share in a range of $4.32 to $4.44, which represents growth of 12 to 15% over $3.87 in 2015.
Deals so far
Fiserv has enjoyed an active start to 2016.
California-based credit union, Xceed Financial, is merging with fellow Reach Federal Credit Union. The two entities will use Fiserv’s DNA core processing system as their centralised platform. It will be provided on a hosted basis.
Three credit unions in the US also converted to DNA: Texas Dow Employees Credit Union, Thrivent Federal Credit Union, and Neighbors Federal Credit Union. The projects were a couple of years in the making.
While far away from the US, Bank of Ceylon, the largest bank in Sri Lanka, continued its long-term relationship with Fiserv, and upgraded to the recent versions of Signature (retail core banking) and Teller (a front-end teller system).
UPDATE 9 May 2016:
Banking Technology contacted Fiserv to clarify its financial results. In the UK “earnings” and “profit” have different meanings.
The story’s headline did originally say: Fiserv revenue rises in Q1 2016, but profit a mystery
The second part of the headline has been removed to ensure clarity; and the second paragraph has been edited to reflect Fiserv’s comments and clarification. The URL has also been edited accordingly.