FIS (NYSE:FIS), a provider of financial services technology, today reported its fourth quarter and full-year 2023 results.
On a GAAP basis, excluding $1.2 billion of revenue classified as discontinued operations, revenue decreased 1% in the final quarter of 2023 as compared to the prior year period to approximately $2.5 billion.
GAAP net earnings attributable to common stockholders from continuing operations were $64 million, down 41% from the year-ago period. Including discontinued operations, GAAP net earnings attributable to common stockholders were $251 million or $0.42 per diluted share.
On an adjusted basis, revenue was flat as compared to the prior-year period driven by 7% adjusted recurring revenue growth, offset by a 16% decline in adjusted non-recurring revenue. Adjusted EBITDA margin expanded by 70 basis points (bps) over the prior-year period to 42.1% primarily driven by cost efficiencies.
Adjusted net earnings for continuing operations were approximately $558 million, and adjusted EPS decreased by 4% as compared to the prior-year period to $0.94 per diluted share primarily due to a $0.07 headwind associated with higher interest costs. Including discontinued operations, adjusted net earnings were approximately $985 million and adjusted EPS decreased 2% as compared to the prior-year period to $1.67 per diluted share primarily due to a $0.05 headwind associated with higher interest costs.
The company remains committed to shareholder returns and is increasing its goal to repurchase at least $4.0 billion of shares by year end 2024, up from the previous goal of at least $3.5 billion, inclusive of $510 million of shares repurchased in the fourth quarter of 2023. Additionally, the Company continues to target a dividend payout ratio of 35% of adjusted net earnings, excluding equity method investment earnings (loss) (EMI).
On February 25, 2024, FIS’ Board of Directors approved a regular quarterly dividend of $0.36 per common share. The dividend is payable on March 22, 2024, to shareholders of record as of close of business on March 8, 2024.
