Fiserv, Inc., a payments and financial technology solutions provider, has published its financial results for the second quarter and the first half of 2020 this week, revealing a solid increase in revenues and net income.
For the second quarter of 2020, the tech provider reported GAAP revenue of $3.47 billion earlier today. Against the same period of the previous year, this is a substantial increase of 129 per cent. For the first six months of the year, revenue was $7.23 billion, which was greater than 140 per cent year on year.
Contributing to revenues during Q2 and H1 of 2020 was the company’s acquisition of First Data businesses. This added $1.22 billion and $2.62 billion towards revenue, respectively.
Fiserv posted $2 million in net income for the second quarter, with earnings per share coming in at $0.00. This represents a crash of 100 per cent from the second quarter of 2019.
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For the first half of the year, net income of $394 million was recorded, and earnings per share of $0.57. Similar to the second quarter, this is weaker on a yearly comparison. In this instance, it was lower by 49 per cent.
Commenting on the results, Frank Bisignano, President and Chief Executive Officer of Fiserv said in the statement: “We demonstrated the strength and resilience of our business model during the quarter, producing significant free cash flow while delivering value for our clients. Our results also included excellent sales performance which provides strong market momentum entering the second half of the year.
Most important, we are incredibly proud of our people who have displayed unwavering stamina, commitment and courage as we navigate the uncharted waters of a rapidly changing world.”
Net cash generated by operating activities increased by 400 per cent year on year to reach $1.03 billion in the second quarter. For H1 of 2020, this figure was $1.92 billion, which was a strong surge of more than 231 per cent. This uptick is primarily attributable to the acquisition of First Data.
“Given the strength of the results to date and improving performance trends around the world, we expect to deliver our 35th consecutive year of double digit adjusted earnings per share growth and are well-positioned for 2021,” added Bisignano.