22 August 2017
Visit http://response.ncr.com

Fiserv Q3 profits rise

28 October 2009  |  839 views  |  0 Source: Fiserv

Fiserv (NASDAQ: FISV), the leading global provider of financial services technology solutions, today reported financial results for the third quarter of 2009. The company announced the sale of its Loan Fulfillment Solutions business ("Fiserv LFS") in the quarter.

Accordingly, the financial results of Fiserv LFS are reported as discontinued operations for the third quarter of 2009 and for all periods presented. The transaction is expected to close in the fourth quarter of 2009 subject to customary closing conditions.

Total GAAP revenue in the third quarter was $992 million compared with $1.04 billion in 2008. Total adjusted revenue decreased 1 percent to $945 million in the quarter compared with $958 million in 2008. Total GAAP revenue for the first nine months of 2009 was $3.02 billion compared with $3.55 billion in 2008. Total adjusted revenue for the year decreased 2 percent to $2.86 billion compared with $2.91 billion in 2008.

GAAP earnings per share from continuing operations for the third quarter were $0.79 compared with $0.46 in 2008. Total GAAP earnings per share, including discontinued operations, were $0.74 for the third quarter compared with $0.48 in 2008. GAAP earnings per share from continuing operations were $2.21 for the first nine months of 2009 compared with $1.69 in 2008. Total GAAP earnings per share, including discontinued operations, were $2.30 for the first nine months of 2009 compared with $3.08 in 2008.

Adjusted earnings per share from continuing operations in the third quarter increased 14 percent to $0.92 compared with $0.81 in 2008. For the first nine months of 2009 adjusted earnings per share increased 11 percent to $2.72 compared with $2.45 in 2008. Adjusted internal revenue declined 2 percent in the third quarter and the year to date. On a constant currency basis, adjusted internal revenue declined 1 percent in both the quarter and the first nine months of 2009 compared with 2008.

Adjusted operating margin was 28.9 percent in the third quarter and year to date, an increase of 110 basis points and 160 basis points, respectively, over 2008. The increased operating margin resulted primarily from growth in higher-margin revenue, favorable changes in the company's business mix and operating efficiency.

"We continue to deliver high-quality earnings and free cash flow, which is a testament to our market-leading value proposition," said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. "Although top-line revenue growth remains challenged in the current environment, our results continue to showcase the attractiveness of our business model."

Third Quarter Highlights

* Adjusted operating margin in the payments segment increased 70 basis points in the quarter to 31.7 percent through growth in higher-margin revenue and continued cost savings associated with the CheckFree acquisition;
* The financial segment operating margin increased 310 basis points in the quarter to 29.6 percent through improved business mix, ongoing cost efficiencies, and strength in the account processing business;
* Free cash flow was $196 million in the quarter and has increased 9% to $506 million for the first nine months of 2009;
* The company continued to expand its payments footprint by signing 85 electronic bill payment clients in the quarter and a total of 294 clients in 2009. Additionally, the company added 58 EFT/Debit clients in the third quarter and 164 clients so far in 2009;
* The company repurchased 1.3 million shares of its common stock in the third quarter and a total of 3.0 million shares in the first nine months of 2009;
* The company launched Acumen(TM), a new global core account processing solution for the U.S. large credit union market. Built from the ground up, Acumen(TM) supports rapid growth by allowing credit unions to scale their operations quickly and cost effectively.
* The company signed a number of new and expanded client relationships in the quarter:

  • BBVA Bancomer, the largest bank in Mexico with assets of $75 billion, has signed an agreement with Fiserv for its Cash Supply Chain Management solution to reduce costs and improve efficiencies in its cash supply chain operations. Located in Mexico City, Mexico, BBVA Bancomer has 14 million account holders and maintains a services network of approximately 1,800 branches and 6,100 ATMs.
  • Citi Prepaid signed an agreement with Fiserv to provide millions of prepaid cards including plastic manufacturing, personalization and fulfillment services. This agreement dovetails on an existing relationship between Citibank and Fiserv for manufacturing and personalization of cards for Citi's debit program.
  • GreenChoice Bank, a Chicago-based de novo financial institution, selected Fiserv as its technology partner. As the first "green" community bank in the Midwest, GreenChoice will leverage eight Fiserv solutions: outsourced processing on the Premier(R) Bank Platform which will allow the bank to operate in a much smaller space with less hardware on site; online banking; mobile banking; remote capture and e-statements.
  • Panin Bank, a 12-year Fiserv client, agreed to upgrade its account processing system to Signature from Fiserv. As the seventh largest bank of Indonesia with more than $6.5 billion in assets and over 300 branches, the bank will also be implementing loan origination, customer and account servicing, and campaign and lead execution solutions from Fiserv.
  • Prosperity Bank, a $9 billion regional bank located in Houston, TX, will be converting all its internet bill payment to CheckFree(R) RXPSM from Fiserv, moving from a competitor to the award-winning Fiserv solution. Prosperity cited innovation, reliability and service as the reason to move the business to Fiserv.
  • o Umpqua Bank, a $9.2 billion community bank headquartered in Roseburg, Oregon, selected Mobile MoneySM from Fiserv to provide its consumers the ability to access their accounts through the mobile channel.

Outlook for 2009

Fiserv expects its full-year 2009 adjusted earnings per share from continuing operations to be within a narrowed range of $3.63 to $3.68. The company expects adjusted internal revenue growth in the fourth quarter to be in a range of 0 to 2 percent.

"We remain on track to achieve earnings within our full-year guidance in what has been one of the most challenging periods in the history of financial services," said Yabuki. "We continue to deliver solid performance while investing to ensure an even brighter future."

Read the full statement here:

» Download the document now 276.6 kb (PDF File)

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.worldpaymentsreport.comvisit www.vasco.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
12571 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11151 views comments | 22 tweets | 34 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10326 views 0 | 6 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10290 views comments | 10 tweets | 8 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10229 views comments | 21 tweets | 34 linkedin

Featured job

Competitive base and bonus, plus benefits
London, UK

Find your next job