Summary
GLOBAL PAYMENTS INC. (GPN) reported its 2022 fiscal year results, detailing a strategic shift and significant financial activities. The company generated consolidated revenues of $8.97 billion, a 5.3% increase from the prior year, driven by growth in transaction volumes and the increasing adoption of digital payments, although this was partially offset by unfavorable foreign currency exchange rates. The Merchant Solutions segment showed robust revenue growth of 9.5%, while Issuer Solutions saw a more modest 3.7% increase. The Consumer Solutions segment experienced a revenue decline of 20.8%, attributed to the lapsing of government stimulus payments in the prior year. Financially, the company incurred a substantial goodwill impairment charge of $833.1 million related to its former Business and Consumer Solutions reporting unit. Additionally, Global Payments announced significant strategic transactions, including an agreement to acquire EVO Payments for approximately $4 billion, expected to close in Q1 2023. Concurrently, the company is divesting its consumer business for $1 billion and its gaming business for approximately $400 million, both also expected to close in Q1 2023. These divestitures are part of a strategy to focus on core corporate customers. The company also strengthened its capital position through new debt issuances and an increased credit facility.
Financial Highlights
51 data points| Revenue | $8.98B |
| Cost of Revenue | $3.78B |
| Gross Profit | $5.20B |
| SG&A Expenses | $3.52B |
| Operating Expenses | $8.34B |
| Operating Income | $640.15M |
| Interest Expense | $437.00M |
| Net Income | $111.49M |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 275.19M |
| Shares Outstanding (Diluted) | 275.58M |
Key Highlights
- 1Consolidated revenues grew 5.3% to $8.97 billion, driven by increased transaction volumes and digital payment adoption.
- 2Merchant Solutions segment revenue increased by 9.5%, demonstrating strong performance in core business.
- 3The company incurred a significant goodwill impairment charge of $833.1 million related to the former Business and Consumer Solutions segment.
- 4Announced a $4 billion acquisition of EVO Payments, Inc., expected to close in Q1 2023, enhancing its payment technology capabilities.
- 5Entered into definitive agreements to sell its consumer business for $1 billion and its gaming business for approximately $400 million, both expected to close in Q1 2023.
- 6Strengthened liquidity and capital structure by issuing $2.5 billion in senior unsecured notes and securing a $5.75 billion revolving credit facility.
- 7Net income attributable to Global Payments decreased significantly to $111.5 million from $965.5 million in the prior year, primarily due to the goodwill impairment and business disposition losses.