FIS makes early progress against its synergy targets and overall integration of Worldpay

Maria Nikolova

Teams across the combined company have identified opportunities to accelerate the timing of synergy attainment following the transaction close.

Financial services technology provider FIS (NYSE:FIS) has just posted its third quarter 2019 results.

On a GAAP basis, revenue increased 35% to $2,822 million in the three months to end-September 2019 from $2,084 million in the prior year period, primarily driven by the acquisition of Worldpay. Net earnings attributable to common stockholders totalled $154 million for the quarter or $0.29 per diluted share.

On an adjusted basis, organic revenue increased 5% over the prior year period. Adjusted EBITDA margin expanded 350 basis points over the prior year period to 42.2%. Adjusted net earnings amounted to $751 million or $1.43 per diluted share.

Gary Norcross, FIS chairman, president and chief executive officer, commented:

“We are pleased by the robust demand for our new merchant offerings and are making early progress against our synergy targets and overall integration of Worldpay. These successes combined with the fundamental strength of our business model and ongoing sales success give us confidence that we are well positioned to drive further value for our clients and shareholders.”

After the close of the Worldpay acquisition, FIS began realizing revenue and expense synergies during the third quarter of 2019. Teams across the combined company are working well together and have identified opportunities to accelerate the timing of synergy attainment following the transaction close. FIS says that these promising early integration efforts further solidify its confidence in accelerating organic revenue growth, approaching 7% in 2020 with a target of 8 to 9% in the future.

FIS achieved annual run-rate synergies exiting the third quarter 2019 as follows:

  • Revenue synergies of over $30 million;
  • Expense synergies of over $200 million, inclusive of over $100 million of interest expense savings.

The company reiterates full-year 2020 annual run-rate revenue synergy target and increases full-year 2020 annual run-rate expense synergy target to:

  • Revenue synergies of $150 million, which was increased $50 million in the second quarter of 2019;
  • Expense synergies of over $350 million, an increase of $50 million.

Read this next

Crypto Insider

Gate.io lists DeFiChain’s DFI token amid growing popularity

Bitcoin-based DeFi platform DeFiChain announced the listing of its native DFI token on Gate.io, one of the world’s leading cryptocurrency exchanges.

Digital Assets

Binance in discussions with Japan regulators to relaunch operations

Binance, the world’s largest crypto exchange by traded volume, is reportedly seeking a license to operate in Japan after its exit from the country four years ago.

Digital Assets

OKX Chain integrates .crypto domains to simplify wallet transactions

Unstoppable Domains, a company building Blockchain domain names, has entered a partnership with EVM and IBC compatible chain OKC (OKX Chain). This collaboration will grant OKC’s users the ability to simplify deposits and withdrawals within the regulated fiat-focused crypto-asset exchange.

Retail FX, Technology

MetaTrader’s iOS issue opens brokers’ eyes to other trading platforms

In a surprising (or-not-so-surprising) move, Apple has removed MetaTrader 4 and MetaTrader 5 from its App Store in a huge blow for the leading FX trading platform provider.

Retail FX

Pepperstone adds Capitalise.ai analytics and automated trading tools free of charge

“We look forward to bringing significant value to Pepperstone traders and making a real, positive impact in their daily trading habits. We are excited to welcome them on board.”

Retail FX

FP Markets wins Best Global Value Broker for 4th consecutive year at the 2022 Global Forex Awards

“We greatly appreciate the continued international recognition as at FP Markets we pride ourselves on these attributes and these prestigious awards are testament to the hard work from our global team to always provide our clients with the ultimate trading experience.”

Inside View

How to Engage Your Customer at Every Stage of Their Journey

As many as 89% of successful businesses say that providing assistive customer experiences is critical to their growth. That’s because a mere 5% increase in customer retention can boost profits by 25% to 95%.

Industry News

CFTC fines Chinese firms Chinatex and COFCO $720,000 for wash trading

Chinatex traders engaged in wash trading in order to liquidate a long position in the account of an affiliated company and re-establish the position in its own account, to the ultimate benefit of its parent company, COFCO.

Industry News

US-based operation of Brazilian broker XP fined $500,000 for recordkeeping failures

“Proper recordkeeping is vital to protecting our markets and market participants from fraud and manipulation. This case serves as another example of the Commission’s intent to vigorously enforce the recordkeeping obligations of its registrants.”

<