Total segment revenue was $2,080 million for the quarter, up 11% versus the prior year period on a reported basis(a), up 10% on a comparable accounting basis(b), or up 5% on an organic constant currency basis(c). Consolidated revenue for the first quarter was $2,282 million, impacted by the adoption of ASC 606.

Net income attributable to First Data for the first quarter of 2018 was $101 million, or $0.11 per diluted share, up 181% and 175%, respectively, from comparable figures in the first quarter of 2017. The increase in net income attributable to First Data was primarily driven by the non-recurrence of $56 million of debt extinguishment charges that were incurred in the prior year period and improved operating results in the current period.

Adjusted net income, which modifies net income for items such as debt extinguishment charges, stock-based compensation, amortization of acquisition intangibles, restructuring costs, certain discrete tax items and other items, was $279 million, or $0.29 per diluted share, up 8% and 6%, respectively, from comparable figures in the first quarter of 2017. The increase was primarily driven by improved operating results partially offset by a normalized adjusted effective tax rate in the current period.

Total segment earnings before interest, taxes, depreciation, and amortization (total segment EBITDA) in the first quarter of 2018 was $730 million, up 12% versus the prior year period on a reported basis(a), up 14% on a comparable accounting basis(b), or up 10% on an organic constant currency basis(c). Total segment EBITDA margin was 35.1%, up 40 basis points versus the prior year period on a reported basis(a), or up 110 basis points on a comparable accounting basis(b).

“We had an excellent start to 2018. We continued to execute against key initiatives across our business, delivering strong financial performance and positioning us to raise our guidance for the year,” said First Data Chairman and CEO Frank Bisignano. “We further expanded Clover's market presence, our cutting-edge ISV business continued to rapidly gain share, our international businesses again delivered strong growth, and our backlog of new enterprise deals continued to expand and ramp,” Bisignano added.

Segment Results

Global Business Solutions(GBS)

First quarter 2018 GBS segment revenue was $1,318 million, up 18% versus the prior year period on a reported basis(a), up 15% on a comparable accounting basis(b), or up 7% on an organic constant currency basis(c). Within geographic regions, North America revenue of $1,014 million was up 15% versus the prior year period on a reported basis(a), up 12% on a comparable accounting basis(b), or up 4% on an organic constant currency basis(c), driven by strong growth in the Partner Solutions and the Direct channels, partially offset by a modest decline in JV channel revenue. EMEA revenue was $168 million, up 20% on a reported basis(a), up 19% on a comparable accounting basis(b), or up 4% on an organic constant currency basis(c). Latin America revenue was $88 million, up 49% on a reported basis, up 38% on a comparable accounting basis(b), or up 52% on an organic constant currency basis(c), driven by strong results in Brazil and Argentina. APAC revenue was $48 million, up 21% on both a reported and comparable accounting basis(a) (b), or up 15% on an organic constant currency basis(c), driven by good growth throughout the region.

First quarter 2018 GBS segment EBITDA was $434 million, up 14% versus the prior year period on a reported basis(a), up 16% on a comparable accounting basis(b), or up 10% on an organic constant currency basis(c). Reported segment EBITDA margin was 32.9% in the quarter, down 130 basis points versus the prior year period on a reported basis(a), or up 40 basis points on a comparable accounting basis(b).

Global Financial Solutions(GFS)

First quarter 2018 GFS segment revenue was $400 million, up 2% versus the prior year period on both a reported and comparable accounting basis(a) (b), or up 1% on an organic constant currency basis(c). Within geographic regions, North America revenue of $228 million was down 3% on a reported basis(a), down 2% on both a comparable accounting basis and on an organic constant currency basis(b) (c), driven by recent long-term renewals. EMEA revenue was $110 million, up 9% versus the prior year period on a reported basis(a), up 11% on a comparable accounting basis(b), or up 5% on an organic constant currency basis(c). Latin America revenue was $31 million, down 6% versus the prior year period on a reported basis, down 17% on a comparable accounting basis(b), or down 11% on an organic constant currency basis(c), driven by the non-recurrence of license resolution fees in the prior year period. APAC revenue was $31 million, up 32% versus the prior year period on a reported basis, up 45% on a comparable accounting basis(b), or up 39% on an organic constant currency basis(c), driven by strong growth across the region.

First quarter 2018 GFS segment EBITDA was $166 million, up 8% versus the prior year period on both a reported and comparable accounting basis(a) (b), or up 6% on an organic constant currency basis(c). Reported segment EBITDA margin was 41.5% in the quarter, up 230 basis points versus the prior year period on a reported basis(a), or up 220 basis pointson a comparable accounting basis(b).

Network & Security Solutions(NSS)

First quarter 2018 NSS segment revenue was $362 million, flat versus the prior year period on a reported basis(a), up 4% on a comparable accounting basis(b), or up 7% on an organic constant currency basis(c). Within NSS's primary businesses, Stored Value revenue grew mid-teens in the quarter, and both the Security and Fraud unit and the EFT unit revenue grew mid-single digits.

First quarter 2018 NSS segment EBITDA was $175 million, up 13% versus the prior year period on reported, comparable accounting and organic constant currency bases(a) (b) (c). Reported segment EBITDA margin was 48.3% in the quarter, up 510 basis points versus the prior year period on a reported basis(a), or up 330 basis pointson a comparable accounting basis.

Cash Flow

In the first quarter 2018, cash flow from operations was $534 million, up $113 million compared to $421 million in the prior year period. Free cash flow, which the Company defines as cash flow from operations less capital expenditures, distributions to minority interests and other, was $368 million in the current quarter, up $107 million compared to $261 million in the prior year period, primarily driven by improved operating results and working capital improvements in the current period.

Capital Structure

First Data's total borrowings at March 31, 2018 decreased by $186 million to $19,012 million, from $19,198 million at December 31, 2017. The decrease was driven by debt paydowns during the period. Net debt at March 31, 2018 decreased by $239 million to $18,382 million, from $18,621 million at December 31, 2017.

Updated 2018 Full Year Financial Guidance

The updated guidance provided below holds foreign exchange rates constant versus the year-ago comparable period ("constant currency"), and applies the New Reporting Standards to the referenced year ago period.

Total segment revenue growth: 6% to 7%, compared to previously disclosed guidance of 5% to 7%. Both ranges include a net benefit attributable to the full year impact of previously announced major acquisitions and dispositions of approximately 2 percentage points.
Total segment EBITDA growth: 8% to 10%, compared to previously disclosed guidance of 7% to 9%. Both ranges include a net benefit attributable to the full year impact of previously announced major acquisitions and dispositions of approximately 1.5 percentage points.
Adjusted diluted EPS:$1.42 to $1.47, compared to previously disclosed guidance of $1.35 to $1.40.
Adjusted Effective tax rate: Approximately 25%, compared to previously disclosed guidance of 27% to 29%.
Free cash flow:$1.4 billion+, remains unchanged from previously disclosed guidance.