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


Fiscal Year Ended December 31, 2017 Compared to Fiscal Year Ended December 31, 2016

The following tables set forth our statements of income in dollars and as a percentage of net revenue for the periods presented (in millions).

 

     Year Ended December 31,                
     2017      2016      $ Change      % Change  

Revenue

   $ 4,026.5      $ 3,579.0      $ 447.5        13

Network fees and other costs

     1,903.2        1,674.2        229.0        14  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net revenue

     2,123.3        1,904.8        218.5        11  

Sales and marketing

     669.5        582.3        87.2        15  

Other operating costs

     318.7        294.2        24.5        8  

General and administrative

     295.1        189.7        105.4        56  

Depreciation and amortization

     318.5        270.1        48.4        18  
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

   $ 521.5      $ 568.5      $ (47.0      (8 )% 
  

 

 

    

 

 

    

 

 

    

 

 

 

 

As a Percentage of Net Revenue    Year Ended December 31,  
     2017     2016  

Net revenue

     100.0     100.0
  

 

 

   

 

 

 

Sales and marketing

     31.5       30.6  

Other operating costs

     15.0       15.4  

General and administrative

     13.9       10.0  

Depreciation and amortization

     15.0       14.2  
  

 

 

   

 

 

 

Income from operations

     24.6     29.8
  

 

 

   

 

 

 

Revenue

Revenue increased 13% to $4,026.5 million for the year ended December 31, 2017 from $3,579.0 million for the year ended December 31, 2016. The increase was due primarily to revenue growth in our Technology Solutions and Merchant Solutions segments offset by a slight decrease in revenue in our Issuer Solutions segment.

Network Fees and Other Costs

Network fees and other costs increased 14% to $1,903.2 million for the year ended December 31, 2017 from $1,674.2 million for the year ended December 31, 2016. The increase was due to a combination of transaction growth and higher network fees.

Net Revenue

Net revenue, which is revenue less network fees and other costs, increased 11% to $2,123.3 million for the year ended December 31, 2017 from $1,904.8 million for the year ended December 31, 2016 due to the factors discussed above.

Sales and Marketing

Sales and marketing expense increased 15% to $669.5 million for the year ended December 31, 2017 from $582.3 million for the year ended December 31, 2016. The increase was primarily attributable to higher residual payments to referral partners as a result of increased revenue in our Technology Solutions and Merchant Solutions segments in connection with the continued penetration of small and mid-sized merchants.

Other Operating Costs

Other operating costs increased 8% to $318.7 million for the year ended December 31, 2017 from $294.2 million for the year ended December 31, 2016. When excluding transition, acquisition and integration costs, other operating costs increased 6% to $303.9 million for the year ended December 31, 2017 from $285.4 million for the year ended December 31, 2016. The increase was primarily attributable to an increase in the information technology and operation costs, in support of our revenue growth as well as $8.9 million relating to the acquisition of Paymetric.

 

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