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Jun 30, 2020

Global Payments Q2 2020 Earnings Report

Reported solid financial performance amidst a challenging environment, with results exceeding post COVID-19 expectations and showing significant improvement in May and June.

Key Takeaways

Global Payments reported GAAP revenues of $1.672 billion, compared to $935 million in the second quarter of 2019. Adjusted net revenues declined 14% to $1.521 billion, compared to $1.772 billion in the second quarter of 2019 on a combined basis. Adjusted earnings per share declined 13% to $1.31, compared to $1.51 in the second quarter of 2019.

Entered into a new relationship with Amazon Web Services (AWS) to be their preferred cloud provider for issuer business.

Expanded relationship with CaixaBank by agreeing to meaningfully increase ownership in joint venture and extending partnership through 2040.

Cost actions in response to the pandemic remain on track to deliver $400 million in additional annual run rate expense savings.

Benefited by entering the crisis in extraordinary condition, which enabled them to substantially exceed adjusted operating margin expectations for the quarter.

Total Revenue
$1.52B
Previous year: $1.11B
+36.5%
EPS
$1.31
Previous year: $1.51
-13.2%
Adjusted Operating Margin
37%
Previous year: 37.4%
-1.1%
Gross Profit
$778M
Previous year: $633M
+23.0%
Cash and Equivalents
$1.83B
Previous year: $1.05B
+74.2%
Total Assets
$44B
Previous year: $14.6B
+201.7%

Global Payments

Global Payments

Global Payments Revenue by Segment

Revenue & Expenses

Visualization of income flow from segment revenue to net income