Atlanta-based Global Payments (GPN) reported fourth calendar quarter (4Q/16) [fiscal second quarter ending 11/30/16] gross revenues grew 30.4% year-on-year (YOY), while net income declined 37.2% YOY. Revenues for North America increased 16.1% YOY.
GPN says the particularly strong performance was driven by the integrated payments businesses, OpenEdge and Ezidebit, and from its software led solutions at Heartland Commerce and Campus Solutions.
For the 4Q/16 GPN gross revenues were up 30.4% YOY to $941.8 million, compared to $939.5 million in the prior quarter, and $722.4 million one-year ago.
For the fourth quarter GPN net income was down 37.2% YOY to $49.5 million, compared to $85.1 million in the prior quarter, and $78.8 million one-year ago.
Revenues for the North America segment increased 16.1% YOY to $701.3 million, compared to $711.8 million in the prior quarter, and $604.1 million one-year ago.
Revenues for Europe were up 18.2% YOY, while Asia-Pacific was flat.
Due to the strong four quarter growth GPN is raising its expectation for expense synergies from the Heartland merger to $135 million, a $10 million increase from the prior target.
For calendar 2017, the company expects reported adjusted net revenue of $3.35 to $3.45 billion, representing estimated growth of 18% to 21% over its calendar 2016 estimate, or 20% to 24% on a constant currency basis.
4Q/15: $722.4 million
1Q/16: $679.9 million
2Q/16: $747.1 million
3Q/16: $939.5 million
4Q/16: $941.8 million
4Q/15: $78.8 million
1Q/16: $69.1 million
2Q/16: $37.2 million
3Q/16: $85.1 million
4Q/16: $49.5 million
NORTH AMERICA REVENUES
4Q/15: $604.1 million
1Q/16: $478.1 million
2Q/16: $532.4 million
3Q/16: $711.8 million
4Q/16: $701.3 million
Source: Global Payments Network
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