FIS (NYSE:FIS), a global leader in financial services technology, reported its second quarter 2020 results.
On a GAAP basis, revenue increased 40% to $2,962 million, primarily driven by the July 31, 2019 acquisition of Worldpay, Inc. (Worldpay). Net earnings attributable to common stockholders was $19 million or $0.03 per diluted share.
On an organic basis, revenue decreased 7% compared to the prior year period, primarily due to reduced consumer spending trends caused by shelter-in-place, lockdown orders and other impacts associated with the ongoing COVID-19 pandemic. Organic growth was also impacted by a headwind of approximately 2%, or $60 million, associated with the U.S. tax filing deadline transitioning from the second quarter to the third quarter of 2020. Adjusted EBITDA margin expanded by 150 basis points (bps) over the prior year period to 39.1%, primarily driven by disciplined expense management as well as the acquisition of Worldpay and achievement of associated synergies. Adjusted net earnings were $718 million or $1.15 per diluted share.
“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.”
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