Global Payments selling its Gaming Solutions arm of the company

10 February 2023

(PRESS RELEASE) -- Global Payments Inc. (NYSE: GPN) today announced results for the fourth quarter and year ended December 31, 2022.

"We delivered strong results for the fourth quarter and full year 2022, highlighting consistent execution across market cycles,” said Jeff Sloan, Chief Executive Officer. "For the fourth quarter, our Merchant business delivered 9% adjusted net revenue growth (excluding dispositions) and our Issuer business delivered 5% adjusted net revenue growth, each on a foreign exchange neutral (FXN) basis relative to the prior year. Notably, our core Issuer business accelerated sequentially in the fourth quarter to produce its best performance since our merger with TSYS in 2019.

“For calendar 2022, our Merchant business delivered 13% adjusted net revenue growth (excluding dispositions) and our Issuer business delivered 5% adjusted net revenue growth, each on a FXN basis. For the year, we produced 10% adjusted net revenue growth (FXN and excluding dispositions), expanded adjusted margins by 190 basis points and delivered 17% adjusted earnings per share growth (on a FXN basis), consistent with our September 2021 cycle guidance despite the incremental challenges of the macroeconomic environment.”

“We also made great progress on our strategy in 2022," Sloan said. "First, we look forward to closing our acquisition of EVO Payments no later than the end of March as anticipated. The transaction will significantly increase our target addressable markets, enhance our leadership in integrated payments worldwide, expand our presence in new and provide further scale in existing faster growth geographies, and augment our business-to-business software and payment solutions.

“Second, we remain on track to close the divestiture of Netspend’s consumer business by the end of the first quarter. Third, we entered into a definitive agreement to sell our Gaming Solutions business to Parthenon Capital Partners for $415 million, which is consistent with our efforts to refine our portfolio to focus on our corporate clients and away from consumer centric businesses.

“Fourth and finally, we effectively balanced capital investment with return of capital to our shareholders. Through stock repurchases and dividends, we returned over $3 billion in 2022. And we welcomed Silver Lake, the global leader in technology investing, to our base of investors.”

“These transactions further our strategic objectives, simplify our businesses and provide us with enhanced confidence in our growth and margin targets over the cycle. Each of our primary businesses is growing at attractive rates with improved margin profiles.”

Fourth Quarter 2022 summary

  • GAAP revenues were $2.25 billion, compared to $2.19 billion in the fourth quarter of 2021; diluted earnings per share were $0.94 compared to $0.72 in the prior year; and operating margin was 18.1% compared to 14.6% in the prior year.

  • Adjusted net revenues increased 2% (4% constant currency) to $2.02 billion, compared to $1.98 billion in the fourth quarter of 2021; excluding the impact of dispositions, adjusted net revenue increased 7% on a constant currency basis.

  • Adjusted earnings per share increased 14% (17% constant currency) to $2.42, compared to $2.13 in the fourth quarter of 2021.

  • Adjusted operating margin expanded 240 basis points to 44.4%.

Full year 2022 summary:

  • GAAP revenues were $8.98 billion, compared to $8.52 billion in 2021; diluted earnings per share were $0.40 compared to $3.29 in the prior year; and operating margin was 7.1% compared to 15.9% in the prior year.

  • Adjusted net revenues increased 5% (7% constant currency) to $8.09 billion, compared to $7.74 billion in 2021; excluding the impact of dispositions, adjusted net revenue increased 10% on a constant currency basis.

  • Adjusted earnings per share increased 14% (17% constant currency) to $9.32, compared to $8.16 in 2021.

  • Adjusted operating margin expanded 190 basis points to 43.7%.

2023 Outlook

“We achieved strong financial performance in the fourth quarter and for the full year, which highlights the durability of our business model and consistent execution of our technology-enabled strategy,” said Josh Whipple, Senior Executive Vice President and Chief Financial Officer. “We remain well positioned from a financial and operating perspective as we enter 2023.

“Looking ahead, the company expects adjusted net revenue to be in a range of $8.575 billion to $8.675 billion, reflecting growth of 6% to 7% over 2022, and adjusted earnings per share to be in a range of $10.25 to $10.37, reflecting growth of 10% to 11% over 2022 (15% to 16% excluding dispositions). Annual adjusted operating margin for 2023 is expected to expand by up to 120 basis points.

“Our 2023 outlook reflects the closings of the acquisition of EVO Payments, the divestiture of Netspend’s consumer business and the sale of Gaming Solutions in each case by the end of the first quarter.”

Whipple concluded, “We presume a stable worldwide macroeconomic backdrop throughout calendar year 2023.”

Capital allocation:
Global Payments’ Board of Directors approved a dividend of $0.25 per share payable March 31, 2023 to shareholders of record as of March 17, 2023. Our Board of Directors has also reauthorized up to $1.5 billion of share repurchase capacity.

Non-GAAP financial measures:
Global Payments supplements revenues, operating income, operating margin and net income and earnings per share determined in accordance with GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this earnings release to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. The constant currency growth measures adjust for the impact of exchange rates and are calculated using average exchange rates during the comparable period in the prior year.

Global Payments also has provided supplemental non-GAAP information to reflect the pending divestiture of the consumer portion of the Consumer Solutions segment. Management believes that providing such supplemental financial information should enhance shareholders’ ability to evaluate how the business will be managed going forward.

Reconciliations of each of the non-GAAP financial measures to the most directly comparable GAAP measure are included in the schedules to this release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measures.


Related Links
Global Payments

FEATURED iGAMING SUPPLIERS
casino-city-press
global-gaming-expo-g2e
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
igpixel
mondogaming-srl
Igpixel
Launch your online betting site w/ the latest technologies on IGPIXEL's advanced iGaming platform
Mondogaming SRL
A leading software provider for sportsbook platforms, projected in the B2B and B2C business
casino-web-scripts
Casino Web Scripts
Providing certified casino software & casino games with no monthly fees.Custom development available
Your Guide to 3,579 iGaming Industry Suppliers
ADD YOUR COMPANY   |   ABOUT US     linkedin Twitter Facebook