WI-based Fiserv gross revenue posted up mid single-digits year-on-year (YOY) in first quarter (1Q/17). However, net income declined, impacted by the previous sale of StoneRiver, and slightly rising expenses, according to CardData.
Fiserv posted gross revenue of $1394 million for the first quarter, a 5.6% YOY gain, compared to $1431 million for the prior quarter, and $1331 million for the year ago quarter.
Adjusted revenue increased 5.5% in the quarter to $1.32 billion compared with $1.25 billion in the prior year period. Internal revenue growth was 4% for the company, with 5% growth in the Payments segment and 4% growth in the Financial segment.
Net income declined 14.5% YOY to $247 million for 1Q/17, compared to $375 million for 4Q/16, and $289 million for 1Q/16. First quarter profits were driven by a sale of a business interest at StoneRiver Group, a joint venture in which the Fiserv owned a 49% interest.
Payments and industry products revenue was $720 million for the first quarter, a 7.3% YOY gain, compared to $728 million for the prior quarter, and $763 million for the year ago quarter.
Financial institution services revenue was up 3.5% YOY to $620 million for 1Q/17, compared to $644 million for 4Q/16, and $599 million for 1Q/16.
During the first quarter, Barbados’ national debit network upgraded to POSH; First Oklahoma FCU selected the Portico core account processing platform; De Surinaamsche Bank (DSB), the largest commercial bank in Suriname implemented DigitalAccess; Salem Five, a $4.2 billion MA-based bank, selected Fiserv as a new technology partner; Brazosport Teachers FCU Selects Fiserv for Core Account Processing; Credit Union of Southern California (CU SoCal) selected the Architect digital banking platform; opened its third Contact & Servicing Center FL; and, reported 30 banks and credit unions chose the ASP versions of Corillian Online and Mobiliti in 2016.
Fiserv continues to expect 2017 internal revenue growth in a range of 4% to 5%.
1Q/16: $1331 million
2Q/16: $1363 million
3Q/16: $1380 million
4Q/16: $1431 million
1Q/17: $1394 million
1Q/16: $289 million
2Q/16: $212 million
3Q/16: $214 million
4Q/16: $375 million
1Q/17: $247 million
PAYMENTS & INDUSTRY PRODUCTS REVENUE
1Q/16: $671 million
2Q/16: $763 million
3Q/16: $772 million
4Q/16: $728 million
1Q/17: $720 million
FINANCIAL INSTITUTIONS SERVICES REVENUE
1Q/16: $599 million
2Q/16: $612 million
3Q/16: $624 million
4Q/16: $644 million
1Q/17: $620 million