Atlanta-based Global Payments (GPN) reported first calendar quarter (1Q/16) [fiscal third quarter] gross revenues grew 2.2% year-on-year (YOY), while net income rose 10.4% YOY. Revenues for North America increased 1.1% YOY.
GPN is on track to close its merger with Heartland Payment Systems (HPS) during the second quarter.
GPN will acquire HPS in a cash-and-stock transaction for $100.00 per share, representing a transaction value of approximately $4.3 billion.
The combined company will provide market-leading payments solutions to nearly 2.5 million merchants globally.
For the 1Q/16 GPN gross revenues were up 2.2% YOY to $679.9 million, compared to $697.3 million in the prior quarter, and $665.0 million one-year ago.
For the first quarter GPN gross revenues were up 10.4% YOY to $69.1 million, compared to $74.8 million in the prior quarter, and $62.6 million one-year ago.
Revenues for the North America segment increased 1.1% YOY to $478.1 million, compared to $488.8 million in the prior quarter, and $473.1 million one-year ago.
Revenues for Europe were up 6.2% YOY, while Asia-Pacific increased 2.5% YOY.
For the full year of fiscal 2016, GPN expects to be at the upper end of its constant currency adjusted net revenue growth expectation of 10% to 12% over fiscal 2015.
As a combined business GPN + HPS expect to generate in excess of $3.0 billion of adjusted net revenue and $1.0 billion of EBITDA annually.
GPN expects to realize at least $50 million in synergies in fiscal 2017 and approximately $125 million of annual run-rate synergies thereafter.
1Q/15: $665.0 million
2Q/15: $706.5 million
3Q/15: $748.8 million
4Q/15: $697.3 million
1Q/16: $679.9 million
1Q/15: $62.6 million
2Q/15: $65.3 million
3Q/15: $86.6 million
4Q/15: $74.8 million
1Q/16: $69.1 million
NORTH AMERICA REVENUES
1Q/15: $473.1 million
2Q/15: $503.0 million
3Q/15: $530.9 million
4Q/15: $488.8 million
1Q/16: $488.8 million
Source: Global Payments Network
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