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Sep 30, 2020
FIS Q3 2020 Earnings Report
FIS reported an increase in revenue and achieved synergies.
Key Takeaways
FIS reported a 13% increase in revenue on a reported basis and 1% on an organic basis, reaching $3,197 million. The company achieved approximately $150 million in annual run-rate revenue synergies and over $700 million in expense synergies. Diluted EPS stood at $0.03, while Adjusted EPS reached $1.42. The company generated $1,411 million in net cash from operating activities and $866 million in free cash flow.
Revenue increased by 13% on a reported basis and 1% on an organic basis, reaching $3,197 million.
Annual run-rate revenue synergies reached approximately $150 million, and annual run-rate expense synergies exceeded $700 million.
Diluted EPS was $0.03, and Adjusted EPS was $1.42.
Net cash provided by operating activities was $1,411 million, with a free cash flow of $866 million.
FIS
FIS
FIS Revenue by Segment
Revenue by Segment
Banking Solutions Revenue
CapyFin.comCapital Market Solutions Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
FIS expects to achieve revenue synergies exceeding $200 million and operational expense synergies exceeding $400 million in annual run-rate achievement exiting 2020.
Positive Outlook
- Continued successful origination of new bank referral agreements.
- Premium Payback cross-selling wins.
- Revenue synergies remain on track to exceed $200 million in annual run-rate achievement exiting 2020.
- Expense synergies exceeding $700 million.
- Operational expense synergies remain on track to exceed $400 million in annual run-rate achievement exiting 2020.
Challenges Ahead
- COVID-19 continues to impact financial results.
- Consumer spending impacting Merchant Solutions payments volume and transaction revenue have partially recovered.
- Certain verticals like travel, entertainment and hospitality continue to be significantly impacted.
- Revenue continues to be impacted by reduced payment processing volumes within Merchant Solutions segment.
- Transaction volume within Banking Solutions segment is impacted.
Revenue & Expenses
Visualization of income flow from segment revenue to net income