Fidelity Information Services (FIS) posted results on Tuesday (Aug. 4) that showed organic growth in banking and capital market solutions at 4 percent and 3 percent YOY respectively, while it made headway on its synergies in the wake of its 2019 acquisition of Worldpay.
Gary Norcross, FIS chairman, president and chief executive officer, said the company’s employees delivered a “very strong quarter” despite the challenges of the coronavirus.
“The pandemic has been a catalyst, driving us to achieve outstanding results — all while maintaining our implementation, processing and product development commitments to our clients and prospects,” Norcross said.
The executive noted that new sales brought in more than $1 billion in total contract value in the second quarter even with shelter-in-place measures. Norcross said that customers are seeking “new ways to transform their legacy technology to a frictionless digital experience.”
Management said the integration of Worldpay and associated synergies are coming along “well ahead of schedule.” For this reason, the firm remains on pace to satisfy or come out ahead of its past stated revenue synergy targets for year-end 2020.
The company said it reached annual run-rate synergies leaving Q2 with revenue synergies of roughly $115 million and expense synergies of over $700 million.
As for its overall results, FIS reported adjusted earnings per share of $1.15 on $2.96 billion in revenue for the second quarter. The results exceeded analyst expectations of earnings per share of $1.10 on $2.88 billion in revenue.
“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,” Norcross said.
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