Summary
Fidelity National Information Services, Inc. (FIS) reported strong revenue growth in 2019, largely driven by the significant acquisition of Worldpay. This strategic move positioned FIS as a global leader in financial technology, expanding its merchant solutions capabilities and global reach. The company's diversified revenue streams across Merchant, Banking, and Capital Markets segments provide a degree of stability, though the report highlights ongoing industry consolidation and evolving technological demands. While the Worldpay acquisition has boosted revenue, it also brought substantial integration costs and increased debt levels. Management is focused on integrating Worldpay, realizing synergies, and managing the combined entity effectively. Investors should monitor FIS's ability to leverage its scale and expertise to drive profitable growth, manage its debt, and adapt to the dynamic fintech landscape. The company's competitive strengths lie in its global distribution, deep domain expertise, and strong customer relationships, which are crucial for navigating the competitive environment and capitalizing on future opportunities.
Financial Highlights
56 data points| Revenue | $10.33B |
| Cost of Revenue | $6.61B |
| Gross Profit | $3.72B |
| SG&A Expenses | $2.67B |
| Operating Income | $969.00M |
| Interest Expense | $389.00M |
| Net Income | $298.00M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.66 |
| Shares Outstanding (Basic) | 445.00M |
| Shares Outstanding (Diluted) | 451.00M |
Key Highlights
- 1Completed the significant acquisition of Worldpay on July 31, 2019, transforming FIS into a global leader in financial technology and expanding its merchant solutions capabilities.
- 2Reported a substantial increase in total revenue to $10.333 billion in 2019, up from $8.423 billion in 2018, primarily driven by the Worldpay acquisition.
- 3Reorganized into three primary reportable segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions, reflecting the integrated business post-Worldpay acquisition.
- 4Demonstrated strong Adjusted EBITDA margins across its segments, particularly in Merchant Solutions (49.4%) and Capital Market Solutions (46.1%) for 2019.
- 5Maintains a robust competitive position due to its global distribution and scale, extensive domain expertise, and strong, long-term customer relationships.
- 6Successfully managed integration synergies and expense reductions ahead of schedule following the Worldpay acquisition.
- 7Managed a significant debt load of $20.2 billion at year-end 2019, a result of financing the Worldpay acquisition, while also having $1.2 billion in cash and cash equivalents.