Fiserv reports 67 percent increase in profits

Payments segment drives growth

The Fiserv headquarters in Brookfield.
The Fiserv headquarters in Brookfield.

Brookfield-based financial services technology developer Fiserv Inc. today reported a 67 percent increase in profits.

The Fiserv headquarters in Brookfield.
The Fiserv headquarters in Brookfield.

Second quarter net income was $212 million, or 94 cents per diluted share, up from $127 million, or 53 cents per diluted share, in the second quarter of 2015.

The significant increase was driven by 9 percent revenue growth in the Payments segment, which includes debit, credit and ATM payment services, and 1 percent revenue growth in the Financial segment. Earnings were impacted by $85 million that went toward debt extinguishment and refinancing costs during the second quarter of 2015.

Operating income was $362 million, up from $326 million in the same period a year ago.

Second-quarter revenue totaled $1.4 billion, up five percent from $1.3 billion in the second quarter of 2015. Sales strength is expected to continue, with president and chief executive officer Jeffery Yabuki describing July as one of the company’s strongest-ever sales months.

“Our second quarter results were highlighted by strong growth in the Payments segment leading to double-digit gains in adjusted EPS,” said Jeffery Yabuki, president and chief executive officer of Fiserv. “Strong sales results in the quarter should add to our momentum in the second half of the year.”

He said the company expects to grow with the implementation of new technologies, including its Verifast palm vein reader and its integration of its Corillian Online banking platform with the Amazon Echo.

There were some disruptions during the second quarter, Yabuki said.

“We saw a mini-crash in alternative lending as certain high flyers saw disturbance in their lending portfolios,” he said.

Fiserv’s offerings are positioned to benefit from the increase of digital banking by consumers.

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Molly Dill, former BizTimes Milwaukee managing editor.

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