The 50% increase in FIS’ revenue for the period was attributed to the last year’s acquisition of Worldpay
Fidelity National Information Services (FIS) has reported a total revenue of $3.07bn for the first quarter of this year.
The total revenue for the period was 50% higher compared to the same period last year. The growth in revenue was primarily driven by the last year’s acquisition of Worldpay, FIS noted.
The net earnings attributable to shareholders in the quarter was $15m, down 90% compared to the corresponding period of last year.
The total cost of revenue for the period was $2.08bn, which increased from $1.4bn in the first quarter of 2019.
FIS first quarter performance across its divisions
The total revenue includes revenue from different divisions such as merchant solutions, banking solutions, capital market solutions, and corporate and other.
The merchant solutions division earned a revenue of $935m for the period. As per FIS, the figure reflects Worldpay acquisition and excludes $10m which was reclassified to the Corporate and Other segment.
The division’s organic revenue growth was flat compared to last year period and it is attributable to the decline in payment processing volumes associated with the Covid-19 pandemic.
The banking solutions division earned a revenue to $1.46bn, posting a 6% increase over the prior year period.
Organic revenue growth was 1% from last year period and includes the negative impact created by the decline in issuer processing, debit network and account transaction volumes associated with the coronavirus crisis.
The capital market solutions division earned a revenue of $631m, increasing from $572m in the corresponding period of last year.
FIS chairman, president and CEO Gary Norcross said: “As a critical infrastructure provider to commerce and the financial world, we remain intensely focused on protecting our employees and continuing to meet the needs of our clients during this time of worldwide uncertainty.
“In challenging times like these, we are very pleased with the strength and durability of our business model. We continue to invest and innovate across our broad portfolio of banking, capital markets and merchant solutions in order to help lift our clients and communities while continuing to deliver value to our shareholders.”