Q1 2025 Fidelity National Information Services Inc Earnings Call Transcript
Key Points
- Fidelity National Information Services Inc (FIS) reported a strong start to 2025 with adjusted revenue growth of 4%, exceeding expectations.
- Recurring revenue growth accelerated from 2% last quarter to 4%, indicating strong demand for FIS's core solutions.
- The company achieved an adjusted EBITDA at the high end of its outlook, with a free cash flow conversion exceeding 70%.
- FIS announced strategic transactions, including the sale of its Worldpay stake and acquisition of the Issuer Solutions business, expected to strengthen its financial profile and value proposition.
- The company returned $670 million to shareholders through share repurchases and dividends, demonstrating strong capital management.
- Professional services revenue declined by 5% due to the completion of large projects, impacting overall revenue growth.
- Banking EBITDA margin contracted to 40.1%, reflecting high license and termination fees from the previous year.
- The company faces a tough year-on-year comparison on EMI, impacting EPS growth.
- Capital expenditures were 9% of revenue, which may indicate high ongoing investment requirements.
- There is a potential risk of integration challenges with the acquisition of the Issuer Solutions business, which could impact expected synergies.
Thank you for standing by, and welcome to the FIS first-quarter 2025 earnings call. (Operator Instructions) After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
I would now like to turn the call over to George Mihalos, Head of Investor Relations. You may begin your conference.
Thank you, John. Good morning, everyone. Thank you for joining us today for the FIS First Quarter 2025 Earnings Conference Call. Call is being webcasted. Today's earnings release, corresponding presentation and webcast are all available on our website fisglobal.com.
On the call with me this morning are Stephanie Ferris, our CEO and President; and James Kehoe, our CFO. Stephanie will lead the call with a strategic and operational update, and James will review our financial results.
Turning to Slide 3. Today's remarks will contain forward-looking statements. These statements are subject to risks and
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