Summary
Fiserv, Inc. (FISV) reported total revenue of $5.1 billion for the fiscal year ended December 31, 2014, a 5% increase from the prior year. The company operates in two primary segments: Payments and Financial Institution Services. The Payments segment, which accounts for the majority of revenue, saw an 8% increase driven by strong performance in card services, bill payment, and digital channels. The Financial segment experienced a 3% revenue increase, bolstered by account processing and lending businesses, though this was partially offset by international business performance and currency fluctuations. Operating income grew by 14% to $1.21 billion, with operating margins expanding to 23.9% from 22.0% in the previous year, reflecting increased scale efficiencies and cost-saving initiatives. In terms of financial health, Fiserv generated $1.3 billion in net cash from operating activities, a significant 26% increase year-over-year, indicating strong operational cash generation. The company maintained a substantial long-term debt of $3.8 billion, but also a healthy shareholders' equity of $3.3 billion. Fiserv continued its share repurchase program, returning capital to shareholders. The company highlighted its strategic focus on portfolio management, client relationship value, operational effectiveness, capital discipline, and innovation as key drivers for future growth. The report also detailed various risk factors, including intense competition, technological changes, economic conditions, and cybersecurity threats, which the company actively monitors and seeks to mitigate.
Financial Highlights
48 data points| Revenue | $5.07B |
| Cost of Revenue | $717.00M |
| Gross Profit | $4.35B |
| SG&A Expenses | $975.00M |
| Operating Expenses | $3.86B |
| Operating Income | $1.21B |
| Interest Expense | $164.00M |
| Net Income | $754.00M |
| EPS (Basic) | $1.51 |
| EPS (Diluted) | $1.49 |
| Shares Outstanding (Basic) | 497.20M |
| Shares Outstanding (Diluted) | 505.40M |
Key Highlights
- 1Total revenue reached $5.1 billion in 2014, a 5% increase year-over-year, driven by strong performance in the Payments segment.
- 2Operating income increased by 14% to $1.21 billion, with operating margins improving to 23.9%.
- 3Net cash provided by operating activities was robust at $1.3 billion, a 26% increase from 2013.
- 4The acquisition of Open Solutions in January 2013 continued to contribute to growth in the Financial segment.
- 5Fiserv maintained a strong focus on innovation and client relationship value, essential for its recurring revenue business model.
- 6The company actively managed its share repurchase program, demonstrating a commitment to shareholder returns.
- 7Key risks identified include intense competition, technological evolution, cybersecurity threats, and economic volatility in the financial services industry.