Summary
Fidelity National Information Services, Inc. (FIS) reported total consolidated revenues of $9,123 million for the year ended December 31, 2017. The company experienced a slight decrease in revenue compared to 2016, primarily due to divestitures of non-core businesses (Public Sector and Education, and parts of its consulting business). Despite this, FIS demonstrated resilience with growth in key areas like banking and wealth solutions, and payment solutions in Brazil. The company's strategic focus on integration and cost management following the significant SunGard acquisition in late 2015 continues to yield positive results, with cost synergy run-rate savings exceeding $325 million by the end of 2017. FIS's operating income improved, and its Adjusted EBITDA margins showed strength, particularly in the GFS segment. The company also continued to return value to shareholders through dividends and share repurchases, signaling a commitment to shareholder returns amidst strategic repositioning.
Financial Highlights
56 data points| Revenue | $9.12B |
| Cost of Revenue | $5.79B |
| Gross Profit | $2.87B |
| SG&A Expenses | $1.44B |
| Operating Income | $1.43B |
| Interest Expense | $359.00M |
| Net Income | $1.26B |
| EPS (Basic) | $3.82 |
| EPS (Diluted) | $3.75 |
| Shares Outstanding (Basic) | 330.00M |
| Shares Outstanding (Diluted) | 336.00M |
Key Highlights
- 1Total consolidated revenues for 2017 were $9,123 million, a slight decrease from $9,241 million in 2016, primarily due to divestitures.
- 2The company achieved over $325 million in cost synergy run-rate savings from the SunGard acquisition integration.
- 3Operating income increased to $1,492 million in 2017 from $1,298 million in 2016, with an improved operating margin of 16.4%.
- 4Adjusted EBITDA for the GFS segment showed strong growth, increasing by 9.5% year-over-year, with margins expanding due to higher-margin revenues and cost synergies.
- 5FIS continued its commitment to shareholder returns, paying quarterly dividends and having approximately $3,895 million in share repurchase capacity remaining as of December 31, 2017.
- 6The company is strategically focusing on its IP-led businesses following the divestiture of its Public Sector and Education business and a majority stake in its consulting businesses.
- 7Net earnings attributable to FIS common stockholders increased significantly to $1,319 million in 2017, compared to $568 million in 2016, largely influenced by a tax benefit related to tax reform.