Publishing its Q3 2019 trading statement, New York-listed financial services technology group Fidelity INC (FIS) details its enlarged capacity incorporating the assets of Worldpay Inc.
Topline metrics see FIS report Q3 group revenues of $2.8 billion, up 35% ($800m) on comparative Q3 2018’s $2 billion.
In its update, FIS governance notifies that performance metrics have been reported under GAAP – ‘general accepted accounting principals’ as the US technology group publishes its first combined results since officially completing its acquisition of Worldpay on 1 August 2019.
A new auditing structure sees FIS add a new ‘merchant solutions’ vertical to its key financial segments, in which it details that Worldpay assets generated $720 million revenues during the trading period.
In a further note, related to its new merchant channel, FIS discloses that Worldpay retained an organic growth of 8%, supporting a strong EBITDA operating margin of 51%.
Meanwhile, FIS flagship ‘Banking Solutions’ verticals delivered a 4% revenue growth to $1.49 billion (Q32018: $1.43bn), with FIS governance attributing 5% organically during the period.
FIS’s third core ‘Capital Markets’ segment reported a 4% increase in Q3 revenues to $611 million (Q32018: $589m).
Closing Q3 trading, FIS declares a period adjusted EBITDA (GAAP attributable) of $1.19 billion up 48% on Q3 2018’s $808 million.
Updating its corporate balance sheets, FIS reports cash equivalents of $1.3 billion tracked against an outstanding debt plan of $20 billion.
Moving forward, FIS governance increases its full-year 2020 expense synergy target by $50 million to over $350 million
“FIS’ results this quarter exceeded our expectations; demonstrating strong growth across the entire enterprise,” said Gary Norcross, FIS chairman, president and chief executive officer.
“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.”
