10-QPeriod: Q2 FY2022

FISERV INC Quarterly Report for Q2 Ended Jun 30, 2022

Filed July 27, 2022For Securities:FISV

Summary

Fiserv, Inc. (FISV) reported a strong second quarter and first half of 2022, demonstrating robust revenue and operating income growth. Total revenue increased by 10% for both the three and six months ended June 30, 2022, compared to the prior year, driven by higher processing and product sales across all segments. The company saw significant operating income growth of 34% and 52% for the respective periods, with operating margins improving substantially due to revenue growth and cost efficiencies, including reduced acquisition and integration expenses. A notable contributor to the first half results was a $147 million pre-tax gain from the sale of certain merchant contracts. Net income attributable to Fiserv, Inc. more than doubled for both the second quarter and the first half of 2022, reflecting improved operational performance and strategic gains. The company also continued its disciplined capital allocation, repurchasing approximately $1.0 billion of its common stock in the first half of 2022, and a new $6.0 billion revolving credit facility was put in place. Acquisitions, including Finxact and City POS in 2022, continue to be integrated, supporting the company's strategy to expand its offerings in digital banking and merchant services.

Financial Highlights

49 data points
Beta

Revenue

$4.45B

Net Income

$598.00M

13.4% Net Margin

EPS (Diluted)

$0.92

Total Assets

$77.21B

Cash & Equivalents

$3.06B

Free Cash Flow

$603.00M

Financial Statements
Beta
Revenue$4.45B
SG&A Expenses$1.55B
Operating Expenses$3.59B
Operating Income$860.00M
Interest Expense$178.00M
Net Income$598.00M
EPS (Basic)$0.93
EPS (Diluted)$0.92
Shares Outstanding (Basic)645.20M
Shares Outstanding (Diluted)650.80M

Key Highlights

  • 1Total revenue increased by 10% to $4.45 billion for Q2 2022 and to $8.59 billion for the first six months of 2022.
  • 2Operating income surged by 34% to $860 million in Q2 2022 and by 52% to $1.71 billion in the first six months of 2022.
  • 3Net income attributable to Fiserv, Inc. more than doubled, rising to $598 million in Q2 2022 and $1.27 billion in the first six months of 2022.
  • 4Operating margin improved significantly to 19.3% in Q2 2022 and 19.9% in the first six months of 2022, up from 15.9% and 14.3% respectively in the prior year periods.
  • 5A $147 million pre-tax gain on sale of assets was recognized in the first six months of 2022 related to the termination of a joint venture.
  • 6The company repurchased $1.0 billion of its common stock in the first six months of 2022.
  • 7A new $6.0 billion revolving credit facility was established in June 2022.

Frequently Asked Questions

Fiserv reported a 10% increase in total revenue for both the three months and six months ended June 30, 2022, compared to the prior year. Revenue reached $4.45 billion for the second quarter and $8.59 billion for the first six months of 2022, driven by growth in processing and product sales across all business segments.

Profitability saw significant improvement. Operating income increased by 34% to $860 million in the second quarter and by 52% to $1.71 billion in the first six months of 2022. Net income attributable to Fiserv, Inc. more than doubled, reaching $598 million in the second quarter and $1.27 billion in the first six months of 2022. Operating margin expanded to 19.3% in Q2 and 19.9% in H1 2022.

Key drivers included strong revenue growth across the Acceptance, Fintech, and Payments segments, particularly from higher payment and transaction volumes. Operating efficiencies, reduced acquisition and integration costs, and a $147 million pre-tax gain from a joint venture asset sale in the first half of 2022 also contributed significantly to the improved financial performance.

Fiserv continued its share repurchase program, buying back $1.0 billion of stock in the first six months of 2022. The company also established a new $6.0 billion revolving credit facility in June 2022, enhancing its liquidity. Debt levels remained substantial, primarily consisting of fixed-rate senior notes and commercial paper.