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SEC Filings

425
FIDELITY NATIONAL INFORMATION SERVICES, INC. filed this Form 425 on 05/13/2019
Entire Document
 


Segment Results

The following tables provide a summary of the components of segment profit for our three segments for the years ended December 31, 2018 and 2017 (in millions):

The disclosures below exclude Legacy Worldpay results prior to the January 16, 2018 acquisition date for the year ended December 31, 2018 as well as Legacy Worldpay results for the year ended December 31, 2017.

Technology Solutions

 

     Year Ended December 31,                
     2018      2017      $ Change      % Change  

Revenue

   $ 1,601.4      $ 1,264.5      $ 336.9        NM  

Network fees and other costs(1)

     —          454.9        (454.9      NM  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Revenue

     1,601.4        809.6        791.8        98

Sales and marketing

     422.9        277.9        145.0        52  
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment profit

   $ 1,178.5      $ 531.7      $ 646.8        122
  

 

 

    

 

 

    

 

 

    

 

 

 
  

 

(1) 

For the year ended December 31, 2018 net revenue is equivalent to gross revenue since network fees and other costs are netted against gross revenue as the result of the Company’s adoption of ASC 606 on January 1, 2018.

Net Revenue

Net revenue in this segment increased 98% to $1,601.4 million for the year ended December 31, 2018 from $809.6 million for the year ended December 31, 2017. The prior year period excludes $534.7 million of Legacy Worldpay generated net revenue prior to our acquisition. Additionally, strong transaction growth contributed to the increase in net revenue.

Sales and Marketing

Sales and marketing expense increased 52% to $422.9 million for the year ended December 31, 2018 from $277.9 million for the year ended December 31, 2017. The prior year period excludes $77.5 million of Legacy Worldpay generated sales and marketing expense prior to our acquisition. Additionally, higher residual payments to referral partners as a result of increased revenue also contributed to the increase.

Merchant Solutions

 

     Year Ended December 31,                
     2018      2017      $ Change      % Change  

Revenue

   $ 1,976.2      $ 2,303.1      $ (326.9      NM  

Network fees and other costs(1)

     —          1,325.2        (1,325.2      NM  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Revenue

     1,976.2        977.9        998.3        102

Sales and marketing

     683.7        368.6        315.1        85  
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment profit

   $ 1,292.5      $ 609.3      $ 683.2        112
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended December 31, 2018 net revenue is equivalent to gross revenue since network fees and other costs are netted against gross revenue as the result of the Company’s adoption of ASC 606 on January 1, 2018.

 

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