Summary
GLOBAL PAYMENTS INC. (GPN) reported strong financial performance for the year ended December 31, 2017, with consolidated revenues increasing by 17.9% to $3.975 billion. This growth was driven by all operating segments and significant contributions from recent acquisitions, notably the $1.2 billion acquisition of ACTIVE Network in September 2017 and the $3.9 billion merger with Heartland Payment Systems in April 2016. These strategic acquisitions have expanded GPN's scale, merchant base, and vertical reach, particularly in North America. The company also experienced a significant improvement in profitability, with operating income rising by 56.8% and operating margin expanding to 14.1% from 10.6% in the prior year. This was partly due to revenue growth and a notable decrease in acquisition and integration expenses. Net income attributable to Global Payments increased substantially, and the company benefited from a provisional net income tax benefit of $158.7 million related to the 2017 U.S. Tax Act, which reduced its effective tax rate. GPN's strong performance and strategic growth initiatives, combined with a focus on technology-enabled solutions, position it well for continued expansion in the global payment technology market.
Financial Highlights
53 data points| Revenue | $3.98B |
| Cost of Revenue | $1.93B |
| Gross Profit | $2.05B |
| SG&A Expenses | $1.49B |
| Operating Expenses | $3.42B |
| Operating Income | $558.87M |
| Interest Expense | $174.30M |
| Net Income | $468.43M |
| EPS (Basic) | $3.03 |
| EPS (Diluted) | $3.01 |
| Shares Outstanding (Basic) | 154.65M |
| Shares Outstanding (Diluted) | 155.53M |
Key Highlights
- 1Consolidated revenues grew 17.9% to $3.975 billion in 2017, driven by growth across all segments and acquisitions.
- 2Acquisition of ACTIVE Network for $1.2 billion in September 2017, aligning with the strategy of technology-enabled, software-driven solutions.
- 3Merger with Heartland Payment Systems in April 2016 significantly expanded the company's U.S. market presence and capabilities.
- 4Operating income increased by 56.8% to $558.9 million, with operating margin improving to 14.1% from 10.6% in 2016.
- 5Net income attributable to Global Payments rose significantly to $468.4 million from $201.8 million in 2016.
- 6Received a provisional net income tax benefit of $158.7 million due to the 2017 U.S. Tax Act, improving the effective tax rate.
- 7The company's stock performance showed a substantial increase in value from May 2012 to December 2017, outperforming the S&P 500 and S&P Information Technology indices.