First Data segment generates $2.46bn in revenues for Fiserv in Q4 FY2019

Maria Nikolova

GAAP revenue for the company increased 161% to $4.05 billion in the fourth quarter of 2019 compared to the year-ago period, with $2.46 billion from the First Data segment.

Provider of financial services technology solutions Fiserv, Inc. (NASDAQ:FISV) has reported its financial results for the final quarter and full year 2019, with the acquisition of First Data supporting a substantial growth in revenues.

During the fourth quarter of 2019, GAAP revenue for Fiserv increased 161% to $4.05 billion compared to the prior year period, with $2.46 billion from the First Data segment, 5% growth in the Payments segment and 1% decline in the Financial segment. Full year 2019 GAAP revenue for the company increased 75% to $10.19 billion compared to the prior year, with $4.08 billion from the First Data segment, 8% growth in the Payments segment and 1% growth in the Financial segment.

Fiserv reported GAAP earnings per share of $0.36 in the fourth quarter of 2019 and $1.71 for the full year, decreasing 49% and 40%, respectively, compared to the year-ago periods. The company notes that GAAP earnings per share in 2019 include transaction and related integration costs and acquired intangible asset amortization from the application of purchase accounting associated with the First Data acquisition. GAAP earnings per share in 2018 included a gain on the sale of a 55% interest of the company’s Lending Solutions business.

Net cash provided by operating activities was $2.80 billion in 2019 compared to $1.55 billion in 2018.

Internal revenue growth, on a constant currency basis, was 5% in the fourth quarter, with 6% growth in the First Data segment, 4% growth in the Payments segment and relatively consistent performance in the Financial segment compared to the prior year period.

For the full year, internal revenue growth, on a constant currency basis, was 6%, with 7% growth in the First Data segment, 5% growth in the Payments segment and 3% growth in the Financial segment.

Adjusted earnings per share increased 18% to $1.13 in the fourth quarter and 16% to $4.00 for the full year compared to the prior year periods.

In terms of outlook, Fiserv forecasts internal revenue growth of 6% to 8% for 2020. The company also expects adjusted earnings per share to grow in a range of 23% to 27% ($4.86 to $5.02) over the adjusted earnings per share for 2019 as revised for the net impact of divestitures including the Investment Services transaction announced in December.

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