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Fiserv reaffirms guidance on four percent Q2 revenue growth

30 July 2014  |  1183 views  |  0 Source: Fiserv

Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions, today reported financial results for the second quarter of 2014.

GAAP revenue in the second quarter was $1.25 billion compared with $1.20 billion in the second quarter of 2013. Adjusted revenue was $1.18 billion in the second quarter compared with $1.14 billion in the second quarter of 2013, an increase of 3 percent. For the first six months of 2014, GAAP revenue was $2.49 billion compared with $2.35 billion for the first six months of 2013. Adjusted revenue was $2.33 billion in the first half of 2014 compared with $2.22 billion in the same period in 2013, an increase of 5 percent.

GAAP earnings per share from continuing operations in the second quarter was $0.65 compared with $0.57 in the second quarter of 2013. GAAP earnings per share from continuing operations for the first six months of 2014 was $1.31 compared with $1.00 for the first six months of 2013.

Adjusted earnings per share from continuing operations in the quarter increased 8 percent to $0.81 compared with $0.75 in the second quarter of 2013. Adjusted earnings per share from continuing operations in the first six months of 2014 increased 15 percent to $1.63 compared with $1.42 in 2013.

"Our second quarter's results are in line with expectations, and helped fuel a meaningful increase in our adjusted internal revenue growth in the first half of the year compared to 2013," said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. "Market momentum and solid execution have us well-positioned for a very good year."

Second Quarter 2014

Adjusted revenue increased 3 percent in the quarter to $1.18 billion and 5 percent year to date to $2.33 billion over the prior year periods.
Adjusted internal revenue growth in the quarter was 3 percent for the company, driven by 5 percent growth in the Payments segment and 1 percent growth in the Financial segment.
Adjusted internal revenue grew 4 percent in the first six months of 2014, led by 7 percent growth in the Payments segment and 2 percent growth in the Financial segment compared to the first six ared to the first six months of 2013.
Adjusted earnings per share increased 8 percent in the quarter to $0.81 and increased 15 percent in the first six months of 2014 to $1.63 compared to the prior year periods.
Adjusted operating margin increased 10 basis points to 30.6 percent in the quarter and increased 60 basis points to 30.1 percent in the first six months of 2014 compared with the prior year periods.
Free cash flow grew 10 percent to $395 million in the first six months of 2014 compared with $359 million in the prior year period.
The company received a $45 million cash distribution in the quarter from StoneRiver Group, L.P. ("StoneRiver"), a joint venture in which the company owns a 49% interest, which has been excluded from the company's free cash flow.
The company repurchased 3.0 million shares of common stock in the quarter for $168 million and 9.1 million shares of common stock for $519 million in the first six months of 2014. As of June 30, 2014, the company had 9.4 million remaining shares authorized for repurchase.
The company signed 72 Mobiliti™ clients in the quarter and, as of June 30, the company had nearly 1,900 mobile banking clients.
The company signed 75 Popmoney® clients to the payment network in the quarter, which now includes over 2,200 financial institutions.
The company signed 88 electronic bill payment clients and 26 debit processing clients in the quarter.

Outlook for 2014

Fiserv continues to expect 2014 adjusted revenue growth in a range of 4 to 5 percent and adjusted internal revenue growth of 4 to 4.5 percent. The company now expects 2014 adjusted earnings per share to be in a range of $3.31 to $3.37, which represents growth of 11 to 13 percent over $2.99 in 2013.

"Our strong first half results, along with continued growth in our recurring revenue businesses, provides confidence that we will achieve our full-year financial objectives," said Yabuki.

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