FIS Reports a 10% Increase in Revenue on a GAAP Basis during Q3 2021

FIS, a global leader in financial services technology, has published its results for the third quarter of 2021. According to the metrics, revenue surged by over $300 million or 10% on a GAAP basis to $3.5 billion.

Also, net earnings attributable to common stockholders was $158 million or $0.26 per diluted share, FIS reported. Moving into other figures, revenues grew 10% on an organic basis, excluding foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term effects. As a result, reported adjusted earnings per share increased by 17% to $1.6 billion.

The adjusted EBITDA margin was 45.2% in the third quarter, driven by both strong revenue growth and ongoing revenue and expense synergies. While the adjusted net earnings jumped by 21% to $1.1 billion, the adjusted net earnings per share came in at $1.73 per diluted share, an increase of 22%.

“Our team continues to execute exceptionally well. We’re successfully leveraging our broad portfolio and global reach to speed innovation. Further, our robust cash flow enabled us to accelerate share buybacks during the third quarter without sacrificing our ability to execute our growth-focused M&A strategy,” Gary Norcross, FIS Chairman and Chief Executive Officer, commented on the results.

FIS Banking Metrics

On the banking solutions’ front, the company’s revenue increased by 8% to $1.6 billion. Sales Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term contributed significantly to FIS Banking’s strong third-quarter performance. Excluding the effects of FX, organic revenue increased by 8%. AFFO (after-tax income before interest and taxes) rose 14% to $742 million. “Adjusted EBITDA margin expanded 250 basis points over the prior year period to 46.1%, primarily due to revenue mix, high contribution margins from new revenue, and ongoing synergies related to the Worldpay acquisition,” FIS added.

FIS distributed $238 million in dividends and repurchased $1.2 billion worth of shares during the third quarter. In the third quarter, the company's share repurchase pace tripled from the first and second quarters, and it has repurchased $2.0 billion in shares so far this year.