10-KPeriod: FY2021

Fidelity National Information Services, Inc. Annual Report, Year Ended Dec 31, 2021

Filed February 23, 2022For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) reported a strong year for 2021, with total consolidated revenue reaching $13.88 billion, an increase of 11% year-over-year. This growth was driven by a robust performance across all segments, particularly Merchant Solutions which saw a 19% revenue increase, benefiting from the global economic recovery post-COVID-19 and increased payment volumes. Banking Solutions and Capital Markets Solutions also demonstrated solid growth, up 8% each, driven by recurring revenue and new sales. Despite increased operating expenses, including higher compensation and asset impairments related to platform modernization, FIS reported an operating income of $1.06 billion, a significant increase from $552 million in 2020. The company is making strategic investments in technology modernization and innovation to enhance its offerings and maintain its competitive edge. With a strong liquidity position and ongoing commitment to debt reduction, FIS is focused on delivering long-term shareholder value through a combination of organic growth and strategic capital allocation, including a planned increase in its annual dividend.

Financial Statements
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Key Highlights

  • 1Total consolidated revenue increased by 11% to $13.88 billion in 2021, driven by strong performance across all business segments.
  • 2Merchant Solutions revenue grew by 19% year-over-year, benefiting from increased payment volumes and the global economic recovery.
  • 3Banking Solutions and Capital Market Solutions each saw an 8% increase in revenue, supported by recurring revenue streams and new client acquisition.
  • 4Operating income more than doubled to $1.06 billion in 2021, indicating improved profitability and operational efficiency.
  • 5The company invested $1.25 billion in capital expenditures, primarily in software development and platform modernization, signaling a focus on future growth and innovation.
  • 6FIS plans to increase its annual dividend by approximately 20% per year over the next several years, demonstrating confidence in future earnings and commitment to shareholder returns.
  • 7The company ended 2021 with $3.38 billion in available liquidity, including $2.01 billion in cash and cash equivalents, ensuring strong financial flexibility.

Frequently Asked Questions

In 2021, FIS achieved a 11% increase in total consolidated revenue, reaching $13.88 billion. The company also saw a significant improvement in operating income, more than doubling to $1.06 billion, reflecting strong demand across its Merchant, Banking, and Capital Markets segments, alongside effective expense management and strategic investments.

All segments showed growth. Merchant Solutions led with a 19% revenue increase, driven by higher payment volumes. Banking Solutions and Capital Market Solutions both grew revenue by 8%, supported by recurring revenue and new sales. Corporate and Other segment revenue decreased by 10%.

FIS is strategically investing in technology modernization and innovation, allocating significant capital expenditures to software development and platform upgrades. The company is also committed to reducing leverage incurred from past acquisitions and plans to increase its annual dividend by approximately 20% per year over the next several years, signaling a focus on both growth and shareholder returns.

Key risks include cybersecurity threats and data breaches, the competitive landscape in the financial technology sector, changes in regulatory environments, global economic conditions impacting client spending, and the successful integration of acquired businesses. The company also highlights risks related to its substantial debt levels and the potential impact of interest rate fluctuations.