Fiserv, a US payments processing giant, recorded a 10% rise in its revenue for the first half of 2022 compared to last year.
When calculated in line with the Generally Accepted Accounting Principles (GAAP) of the United States, the revenue capped at $8.59 billion in the first six months of this year.
These details are contained in a press statement released on Tuesday, outlining Fiserv’s second quarter 2022 results.
Fiserv said it recorded a 10% jump year-on-year (YoY) in its GAAP revenue for the second quarter of this year. The payments processor generated $4.45 billion in revenue during the period.
Meanwhile, Fiserv's GAAP revenue spiked 11% to $4.26 billion in the fourth quarter of 2021. In 2021, Fiserv’s GAAP revenue hit $16.23 billion. This was 9% higher than the previous year's posting.
Breakdown
According to Fiserv, its Merchant Acceptance business, which serves merchants of all sizes around the world, pulled the largest growth in the first half of the year. The business accounted for 16% of its growth revenue.
On the other hand, the company’s fintech and payment businesses posted 6% and 5% growth rates, respectively.
This same pattern of growth was recorded in Fiserv’s second quarter result: merchant acceptance (14%), fintech (6%) and payments (7%).
Furthermore, Fiserv said its GAAP earnings per share (EPS) grew 130% to $0.92, and 128% to $1.94 in the second quarter (Q2) and first half (H1) of 2022, respectively.
“GAAP operating margin was 19.3% and 19.9% in the second quarter and first six months of 2022, respectively, compared to 15.9% and 14.3% in the second quarter and first six months of 2021, respectively,” Fiserv added.
Commenting on the growth, Frank Bisignano, who became Fiserv’s CEO in 2020, noted that the technology provider “achieved these results while continuing to invest for sustainable growth.”
Bisignano explained: "Our second quarter results were strong, with double-digit organic revenue and adjusted earnings per share growth.
“These results put us above the high end of our full-year guidance range for organic revenue growth and at the high end of our adjusted earnings per share range on a year-to-date basis.”
‘Unprecedented Confluence of Macro Factors’
As a result of its performance, Fiserv said it has raised its full-year outlook for 2022.
The global provider of payments and financial services technology solutions is now expecting organic revenue growth of 9% to 11%.
Additionally, it is now anticipating an adjusted EPS between $6.45 and $6.55. This represents a 16-17% growth increase, the company said.
Bisignano believes that “an unprecedented confluence of macro factors is likely to impact the global economy” this year.
"The demonstrated resilience of our business model, driven by the strength of our assets, balance sheet and pipeline of innovation, should position us well to withstand potential challenges and deliver value for our clients,” he added.
