Worldpay Announces Desirable Results in Q1 of 2019

Wednesday, May 29th, 2019

In May 2019, Worldpay announced its financial report for 2019’s Q1 which ended on March 31. The payment provider performed notably well in the first three months of the year.

Revenue went up 14 percent to $970.0 million in contrast with last year’s $850.7 million in Q1. Looking at GAAP, the net income per diluted stock linked to the company shot slightly to $0.36 as from $(0.36) in 2018. Adjusted net income per stock went up to $0.94 from $0.81 the previous year.

According to Charles Drucker, Worldpay CEO, the company “delivered exceptional results and strong new sales,” which shows its consistency in adapting to market changes. “Worldpay signed 16 more cross-sell deals, preparing us to earn up to $100 million in revenue synergies, and attracted a new rich client base.”

Here’s a detailed report of how the online payment provider performed the first quarter of 2019;

Revenue

Worldpay reported a 14% rise in revenue in the first quarter to reach $970.0 million in contrast to $850.7 million in 2018. The total Merchant and total Company ( Issuer services excluded) revenue went by10% and 9% respectively. These results were exclusive of cryptocurrency revenue increase, foreign currency, and adjustment for 2018’s stub period (January 1- January 15).

Adjusted EBITDA

Worldpay’s adjusted EBITDA was $446.1 million which made up 46.0% of Q1 revenue, which equals a 200 basis points increase in adjusted EBITDA compared to 2018, including cost synergies worth $29 during the quarter.

Cost Synergies

Worldpay has been working to finalize its post-acquisition integration, and now it is looking to gain $250 million in per year cost synergies by the close of 2019, to beat its earlier expectation of $200 million, in annual cost synergies, by the end of 2020.
As a result, Worldpay is boosting its 2019 cost synergies forecast projections from $130-$140 million to $180-$190 million.

Consolidation Agreement

Fidelity National Information Services, Inc. (FIS) and Worldpay Inc. publicized that their boards of directors conjointly agreed to a definitive merger deal where the two will combine as one. The closure of the proposed merger will see current Worldpay shareholder’s own 47 percent of the merged company assets and present-day FIS stockholders own 53 percent of the combined company, on a “fully diluted basis.”

The proposed consolidation, scheduled to close in 2019’s Q3 is subject to conventional agreement conditions, including regulatory consents and receipts of the stockholders.

Final note

Worldpay’s Q1 ended with a better than expected performance. Hopefully, the combined company will lead to even more growth in the coming quarters.