Fidelity Information Services (FIS) is yet to deliver on its true multi-product payment and financial services capacity after seeing its post-Worldpay Inc acquisition momentum interrupted by the COVID-19 pandemic.
A year on from its market breaking $35 billion acquisition of Worldpay, FIS stated that it has completed core enlargement objectives which will deliver market leverage and scale for 2020 trading.
Publishing its Q2 trading statement, FIS revealed combined group revenues of $2.96 billion, up 40% on corresponding 2019’s $2.11 billion.
The New York-listed financial services technology provider highlighted the continued ‘organic growth’ of its legacy business units as its banking solutions generated corporate revenues of $1.47 billion (Q1 2019: $1.3bn).
Further organic highlights saw FIS record 3% growth across its capital market solutions to $629 million (Q2 2019: $594m).
Nevertheless, an enlarged FIS could not escape COVID-19 circumstances, as the company revealed that pandemic restrictions to retail services, travel and hospitality had slowed the momentum of Worldpay assets.
FIS recorded $812 million in revenues attributed to its Merchant Solutions division, but disclosed that its new Worldpay segment had been impacted by COVID headwinds of $60 million.
Updating investors on enlargement directives, FIS revealed that it had secured a further $115 million in additional revenue synergies attached to improved group cross-selling disciplines.
FIS closed its Q2 trading statement by recording a group ‘adjusted EBITDA’ of $1.15 billion, up 46% on Q2 2019’s $794 million. Having absorbed significant enlargement costs and integration expenditures, group net earnings amounted to $19 million.
“Our second-quarter results reflect our ability to leverage the strength of our broad portfolio and the resiliency of our business model to successfully position FIS in attractive markets and execute on our growth strategy,” said Gary Norcross, FIS chairman, president and chief executive officer.
“Throughout the pandemic, we have continued to invest in our technology and solutions, as our clients look for new and innovative ways to operate their businesses. As we continue to drive value to our shareholders, we embrace our responsibility to strive for sustained social change both domestically and globally.”