Stock Monitor: Global Payments Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 04, 2017 / Active-Investors free earnings report on First Data Corp. (NYSE: FDC) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=FDC. First Data reported its third quarter fiscal 2017 operating results on October 30, 2017. The electronic commerce and payment services provider exceeded revenue expectation while its earnings were in-line with market estimates. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Global Payments Inc. (NYSE: GPN), which also belongs to the Services sector as the Company First Data. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, First Data most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

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Earnings Highlights and Summary

First Data's consolidated revenue was $3.08 billion for Q3 2017, up 5% versus Q3 2016 revenue of $2.94 billion. The Company's total segment revenue was $1.91 billion for the reported quarter, up 5% on a y-o-y basis or up 3% on an organic constant currency basis. First Data's revenue numbers topped analysts' estimates of $1.9 billion.

During Q3 2017, First Data's total segment earnings before interest, tax, depreciation, and amortization (EBITDA) were $787 million, up 6% on a y-o-y basis, or up 5% on an organic constant currency basis.

For Q3 2017, net income attributable to First Data was $296 million, or $0.31 per diluted share, up 124% and 121%, respectively, from Q3 2016 net income of $132 million, or $0.14 per diluted share. The increase in net income was driven by a significant discrete tax item in the reported period, improved operating results, and lower interest expense.

First Data's adjusted net income, which modifies net income for items such as debt extinguishment charges, stock-based compensation, amortization of acquisition intangibles, restructuring costs, discrete tax items, and other items, was $373 million, or $0.40 per diluted share for Q3 2017, up 20% and 18%, respectively on a y-o-y basis. The Company's earnings numbers met Wall Street expectations of $0.40 per share.

First Data's Segment Results

During Q3 2017, the Global Business Solutions (GBS) segment's revenue totaled $1.09 billion, up 5% on a y-o-y basis. Within its geographic regions, the segment's North America revenue of $833 million grew 2% on a y-o-y basis. The segment's Europe, Middle-East, and Africa (EMEA) revenue was $150 million, up 9% compared to the year ago same period, primarily driven by growth in the United Kingdom and Germany. GBS business in Latin America revenue surged 53% on a y-o-y basis, driven by strong results in Brazil and Argentina. Asia/Pacific (APAC) revenue was $39 million, up 18% on an organic constant currency basis, primarily driven by growth in India.

For Q3 2017, GBS segment's EBITDA was $465 million, up 2% on a y-o-y basis, or flat on an organic constant currency basis. The segment's EBITDA margin declined 100 basis points to 42.5% in the reported quarter.

During Q3 2017, the Global Financial Solutions (GFS) segment's revenue grew 5% to $416 million. For reported quarter, GFS segment's EBITDA was $180 million, up 14% versus the prior year's corresponding period on both a reported and an organic constant currency basis and reported segment's EBITDA margin improved 350 basis points to 43.3%.

The Network & Security Solutions (NSS) segment's revenue was $395 million, up 5% on a y-o-y basis. Within NSS's primary businesses, Stored Value revenue grew 16% in the reported quarter, Security and Fraud revenue grew 5%, and EFT revenue declined 3%. For Q3 2017, NSS segment' EBITDA was $184 million, up 11% versus the prior year's comparable period. The segment's EBITDA margin improved 270 basis points to 46.6% for the same time period.

Cash Matters

In Q3 2017, First Data's cash flow from operations was $581 million, down $171 million compared to $752 million in Q3 2016. The Company's free cash flow was $370 million in the reported quarter, down $57 million compared to $427 million in the prior year's same period, primarily driven by the non-recurrence of a derivative settlement that occurred in the prior year's corresponding period and timing impacts on settlement flows from day-of-week differences at respective period's quarter ends.

First Data's total borrowings at September 30, 2017 increased to $18.6 billion from $18.5 billion at December 31, 2016. The increase was attributed to recent acquisitions of CardConnect in July 2017 and Acculynk earlier in 2017, partially offset by debt paydowns and divestitures. The Company's net debt increased by $32 million over the same timeframe.

Stock Performance Snapshot

December 01, 2017 - At Friday's closing bell, First Data's stock marginally dropped 0.97%, ending the trading session at $16.29.

Volume traded for the day: 3.43 million shares.

Stock performance in the last twelve-month period ? up 14.48%; and year-to-date ? up 14.80%

After last Friday's close, First Data's market cap was at $14.79 billion.

Price to Earnings (P/E) ratio was at 21.55.

The stock is part of the Services sector, categorized under the Business Services industry.

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