Fiserv came in roughly equal with analysts’ predictions on its Q2 earnings, but missed slightly on revenue. Total revenue was up 3.2 percent year-over-year to $1.18 billion, which is a slight undershoot of analysts’ predictions of $1.23 billion.
Fiserv did see strength in its payments businesses. Growth was largely driven by recurring revenue generated by card services and bill payments. Payments and Industry products outstripped general revenue growth, increasing by 5.2 percent to $591.0 million. On the other end of the spectrum, Financial Institution Services revenue saw only a 1 percent increase.
Fiserv’s payment solutions business has also been the beneficiary of several large contracts wins, most notably with U.S. Bank, TD bank, and major credit union operators Abri, MIDFLORIDA, Southeast Federal Credit Union and Wauna.
Fiserv has also partnered with Visa to roll out the credit card company’s U.S. EMV solution in advance of the October 2015 deadline.
Fiserv has also shown strength in recruiting new partners in its bill pay solution.
Despite the slight miss on revenue forcasts, Fiserv CEO Jeffery Yabuki still believes the company is on track to make its yearly projections.
“Lastly, we continue to see a strong interest by financial institutions in solutions that can help generate new revenue,” Yabuki said in an earnings call. “As I mentioned up front, we are well on track to achieve our full year financial outlook. We continue to expect adjusted revenue to increase 4% to 5% and adjusted internal revenue to grow 4 percent to 4.5 percent for the year. And for reference we expect termination fees in the second half of the year to be about flat to last year’s level.”
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