Global Payments(US:GPN)2025-05-06 11:30Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.2 billion, reflecting constant currency growth of over 5% excluding dispositions [38] - Adjusted operating margin increased by 70 basis points, resulting in an adjusted earnings per share of $2.69, an 11% increase on a constant currency basis [39][40] - The company expects adjusted net revenue growth of 5% to 6% over 2024, with adjusted operating margin expansion of approximately 50 basis points for 2025 [45][47] Business Line Data and Key Metrics Changes - Merchant Solutions achieved adjusted net revenue of $1.69 billion, reflecting 6% growth on a constant currency basis, driven by high single-digit growth in POS and software and integrated embedded businesses [40][41] - Issuer Solutions reported adjusted revenues of $529 million, a 3% increase on a constant currency basis, with an adjusted operating margin of 46.3% [42][43] Market Data and Key Metrics Changes - The company noted that the disposition of AdvancedMD and exit from certain non-core markets in Asia Pacific had a 3-point impact on overall growth, while unfavorable foreign currency exchange rates were over a 1-point headwind for the quarter [39] - The company is well diversified across geographic and vertical markets, positioning it to navigate through current economic uncertainties [39] Company Strategy and Development Direction - The company is focused on a transformation agenda that includes simplifying and streamlining its business, enhancing its global scale, and concentrating investments exclusively on merchant solutions [11][12] - The acquisition of Worldpay is expected to enhance the company's capabilities and market position, creating a complete Commerce Solutions platform [12][14] - The company aims to achieve at least $600 million in cost synergies and $200 million in revenue synergies from the Worldpay acquisition [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable mid to high single-digit adjusted net revenue growth and consistent adjusted operating margin expansion in the coming years [31][32] - The company is closely monitoring ongoing tariff negotiations and their potential impact on the global economy but remains optimistic due to its diversified business model [39] Other Important Information - The company plans to maintain capital spending at 7% to 8% of adjusted net revenue, translating to over $1 billion annually focused on Merchant Solutions post-transaction [36] - The company executed share repurchases of approximately $450 million in the quarter, maintaining a healthy balance sheet with $3.8 billion in available liquidity [45] Q&A Session Summary Question: Can you talk about the rollout plan for the Genius product? - Management indicated that the initial rollout will focus on front book opportunities, with pathways for back book clients to transition at their own pace, emphasizing the excitement around the new capabilities [56][58][62] Question: Has the improved revenue growth at Worldpay been all organic? - Management confirmed that Worldpay's growth has been purely organic, driven by significant investments in their e-commerce and enterprise business [67][68] Question: What are the share buyback assumptions for 2026 and 2027? - Management expects to return over $2 billion in share repurchases in 2026 and over $3 billion in 2027, with a solid mid-single-digit EPS growth rate anticipated post-closing [70][71]