Summary
Fiserv Inc. reported significant growth in 2019, primarily driven by its substantial acquisition of First Data Corporation, which closed on July 29, 2019. This acquisition significantly expanded Fiserv's global footprint and service offerings in financial technology and payment processing. While total revenue saw a substantial increase of 75% to $10.2 billion in 2019, this was largely due to the inclusion of First Data's revenue for approximately five months. Operating income, however, experienced a decrease of 8% to $1.6 billion, and net income attributable to Fiserv, Inc. fell by 25% to $893 million. This decline in profitability is largely attributable to increased interest expenses related to debt incurred for the First Data acquisition, as well as significant acquisition and integration costs. Investors should closely monitor the company's ability to realize the anticipated synergies from the First Data integration and manage its increased debt levels. The company's strategic priorities for 2019 focused on integrating First Data, building high-quality revenue, enhancing client relationships, and driving innovation. The substantial debt load and the ongoing integration process present key challenges and opportunities for Fiserv moving forward. The company did not pay dividends and does not anticipate doing so in the foreseeable future.
Financial Highlights
51 data points| Revenue | $10.19B |
| SG&A Expenses | $3.28B |
| Operating Expenses | $8.58B |
| Operating Income | $1.61B |
| Interest Expense | $507.00M |
| Net Income | $893.00M |
| EPS (Basic) | $1.74 |
| EPS (Diluted) | $1.71 |
| Shares Outstanding (Basic) | 512.30M |
| Shares Outstanding (Diluted) | 522.60M |
Key Highlights
- 1Total revenue increased by 75% to $10.2 billion in 2019, largely driven by the acquisition of First Data.
- 2Operating income decreased by 8% to $1.6 billion in 2019, impacted by acquisition and integration costs.
- 3Net income attributable to Fiserv, Inc. decreased by 25% to $893 million in 2019.
- 4The company incurred significant debt to finance the $46.5 billion acquisition of First Data.
- 5Fiserv did not pay dividends and expects to reinvest earnings for growth.
- 6The company's key enterprise priorities for 2019 included integrating First Data and enhancing client relationships.
- 7Significant goodwill and intangible assets ($36 billion and $17.6 billion respectively at year-end 2019) resulting from acquisitions, present potential impairment risks.