Fiserv(US:FI)2024-07-25 11:06Revenue Growth - Revenue in the Merchant segment increased by $204 million, or 9%, in Q2 2024, and by $461 million, or 11%, in the first six months of 2024 compared to 2023 [152]. - Small Business contributed 8% and 9% to segment revenue growth in Q2 and the first six months of 2024, respectively, driven by increased payment and transaction volume [152]. - Revenue at Corporate and Other increased by $13 million, or 4%, in Q2 2024, and by $30 million, or 5%, in the first six months of 2024 compared to 2023 [347]. Operating Income - Operating income in the Merchant segment increased by $137 million, or 18%, in Q2 2024, and by $314 million, or 23%, in the first six months of 2024 compared to 2023 [349]. Net Income - Net income for the first six months of 2024 was $1,661 million, an increase of $390 million compared to $1,271 million in 2023 [159]. Cost Efficiency - Cost of processing and services as a percentage of revenue decreased to 32.4% in Q2 2024 from 34.4% in Q2 2023, indicating improved operational efficiency [348]. Stock Repurchase and Debt - The company repurchased $3.0 billion of common stock in the first six months of 2024, compared to $2.5 billion in the same period of 2023 [160]. - The company completed a public offering of $2.0 billion in senior notes in March 2024 for general corporate purposes, including share repurchases [357]. - Total long-term debt increased to $24,401 million as of June 30, 2024, compared to $22,363 million at the end of 2023 [163]. - The board of directors authorized the purchase of up to 75.0 million shares of common stock, with no expiration on this authorization [367]. Tax and Compliance - The effective income tax rate for the first six months of 2024 was 18.2%, down from 19.2% in the same period of 2023 [351]. - The company was in compliance with all financial debt covenants during the first six months of 2024, with expectations to maintain compliance moving forward [362]. Risk Management - The company actively monitors market risks, particularly from fluctuations in interest rates and foreign currency exchange rates, and utilizes derivative instruments to hedge against these risks [364].