We believe this reporting structure will best align with how we expect to operate our differentiated payment-centric business model. So we feel very good about obviously where we are. So I think that's just as further validation. Inclusive of TSYS from the date of the merger, we now anticipate adjusted operating margin expansion of up to 40 basis points for the full year. •Net revenue is defined as total revenues less reimbursable items (such as postage) that are recorded by TSYS as expense. In particular, we've had great momentum among the leadership team in merchant as it relates to our go-to-market strategy and finding ways to obviously drive efficiencies in the combined business as we work to implement our target architecture model and target operating model. Thank you. h�b```f``������u�A��b�@̱��U ��YCYo3�0�r�s�pr,`��a������)��LO�=\�yg���a��6sfZhXZZZP3�F���œ��m&PVR�no�aqŜ�[O��]8��� E��n/�e�t��Q�dgL. And this partnership capitalizes on our local market expertise and industry leading Unified Commerce Platform or UCP to provide a true omnichannel experience.We expect to be in market with Citi by year-end 2019. We have very strong experience from an M&A standpoint. TSYS today announced that its board of directors has approved a quarterly cash dividend of $0.13 per share on TSYS common stock, payable September 27, 2019, to TSYS shareholders of record as of the... | … So the answer is yes to your first question. So I think we're -- the strategy as it relates to the combined company really hasn't changed all that much, it will obviously be opportunistic. Yeah. We will be transitioning to this methodology in the fourth quarter and will provide all of the components necessary for you to measure performance under both conventions. Your line is open. While we compile the Q&A roster. Our U.S. direct distribution businesses again delivered low double-digit normalized organic growth this quarter, led by strength in our integrated and vertical markets business. TSYS had revenue of $4 billion in 2018, while processing more than 32.3 billion financial transactions. Our next question comes from Dan Perlin with RBC Capital Markets. Great. �>G ������ks2��?�E���t���ytI��Ҁ���ԬMV�i��^���r`?��z4�[���ZCO�/���� �|;���C:�7W&Y�J���c�,=Ft���-��N��_�=Ik����/�8��I�?���������i���a]���x����Ӈ�+8��z�f�K��ڧea������:N���u���e�&��l���4�$RnO��ɦ��tU��� &���[�/�y�H�%}L��l���IRl��*.�E4E��h�b��CU�ˬ���,�Hgp.�n�-���Y�xaǾ���� 5�}�gF4SG�bXÕ�ި^�Q�*�J�1UN���:��1RZ�d��B����ak�_,�7�yԠ^��(�y`m��l����]�'�y�J� н��{��� ��ΟPH~��#�߁pv��!�Ex�a {��$"GR� ���z�hv������k����`��P*G�B$�C~r�|�;k���3�vۯ��q@Z�>I��,g�yFY{R ����. Starting with Desjardins, we have reached an agreement to purchase the Quebec-based banks' existing portfolio of approximately 40,000 merchants and have executed an exclusive referral partnership to provide acquiring solutions to its clients for the next decade. Yeah Dave. I'll start there, Darrin. So most of the revenue synergies we expect to derive from combining our two businesses are really around those particular cross-selling opportunities, bringing payroll into the existing TSYS base of customers. The momentum we have in our business coupled with the significant progress we have made on integration, bolsters our confidence in the future and more specifically, the accretion expectations we had for the TSYS merger at the time of announcement in May. Hey, thanks guys. Net revenue was $343 million and adjusted segment EBITDA was $128.8 million, which represents annual growth rate increases of 8.1% and 8.3%, respectively. “We now expect adjusted net revenue plus network fees for 2019 to range from $5.60 billion to $5.63 billion, reflecting growth of 41% to 42% over 2018. Okay. But I would say that we have a very strong thesis that we think we have the ability to add a lot of value in all of our businesses, but in particular in light of this question in Consumer Solutions by adding B2B, by adding international applicability and we intend to focus on it. The top 10 competitors average 9,389. As for the outlook for the combined company in 2019, we now expect adjusted net revenue plus network fees to range from $5.60 billion to $5.63 billion, reflecting growth of … But we're glad to be in a position where that meaningfully accelerated in 3Q. And we look forward to updating you on our continued progress in the coming quarters. And as Cameron mentioned, we are expecting further acceleration on that legacy business in Q4. For more, visit tsys.com. Most notably, we expect growth to accelerate in this business as the Issuer Solutions team successfully converted the Walmart portfolio on behalf of Capital One earlier this month. 2019 Outlook TSYS’ 2019 guidance is as follows: 2019 Percent Financial Outlook Change Range (in millions, except per share amounts) Revenue: … But just to reinforce it, number one, I think we have non-U.S. opportunities, particularly in Europe to rollout the prepaid product and I think the market is right for that in those geographies. If a deal is consummated this year, it would be the third megamerger of 2019 in the payments industry. So certainly as we head into 2020, if the Capital Markets Day favorable and our execution continues or accelerates on the path that it's in, I certainly think we're open for business. That ends up being close to half of the overall merchant business on a global basis. Desjardins selected Global Payments as a direct result of the breadth and depth of our technology payment solutions, local and global expertise, comprehensive distribution, modern architecture and infrastructure and our unrivaled track record of execution over many decades. I would say they're probably roughly split between the three buckets. Before concluding today, I want to provide an update on our expected go-forward reporting for the business. And I think the governance model and the structure that we put around, the process itself I think has given us a very strong start to obviously our working relationship and the ability to drive obviously ahead of schedule expense actions that we intend to take as we look to bring these two businesses together. In addition to our new preliminary agreement with Citi, we recently signed several significant global omnichannel customers including with UK-based online luxury retailer MATCHESFASHION and the rapidly expanding modern high-tech hotel chain Yotel. I think once we feel like our sea legs are there and that we're tracking in the right place, this won't be an issue of capital availability or balance sheet, I think we have those today, instead of saying hey we're in a really good place, we're in a really good trajectory, we feel very good managerially about where we are. So it's a nice addition, nice bolt-on to our overall Canadian business and obviously I think opens up new avenues for growth in that market for us going forward. I'll maybe let Jeff ask -- respond to you as it relates to the payback conversation that you raised. I know you did this deal and have a pretty attractive capital structure right now. We were also excited to have been selected by Citi to partner to offer payment acceptance services to its multinational banking clients on an omnichannel basis. Thank you for that. These results were achieved while making significant progress on integration, contributing substantially to an increase in our expected revenue and cost savings expectations just a few weeks post close. So Columbus is really at the heart of the company at the end of the day. We are now live in the United States in addition to Canada and Asia Pacific and will fully rollout UCP in the UK over the next few weeks. [Operator Instructions]. Operator, we will now go to questions. Yeah, Ramsey, it's Cameron. This market-leading business has a full pipeline today and the expanded breadth of our combined 1,300 FY partnerships provide significant untapped opportunities for new issuer and merchant referral relationships. Our next question comes from Tien-tsin Huang of J.P. Morgan. We are very pleased with the progress we've made since closing on our partnership with TSYS last month and have increased confidence in our ability to accelerate revenue growth and deliver substantial cost savings over the next three years and beyond. We have just returned from Europe and we believe that the market is ready for onus processing capabilities domestically and cross-border in geographies like the United Kingdom, Central Europe, Spain, Ireland and closer-to-home, Canada. And then on the issuer side, you mentioned you got a full pipeline, how about on the merchant front, any comments on pipeline or bookings on the software side, I know there's a lot of activity going on with ISVs and dealers and even on the bank side, as you mentioned. We got an early start with our planning process upon announcing the merger in May. In addition, at closing, we received our final investment grade credit ratings from both S&P and Moody's consistent with our expectations. And so, much -- similar to Cameron's comments on the legacy global side, just a great quarter from a merchant standpoint. Appreciate that. I'll start and I'll turn it over to Cameron and Paul. ET. Good morning and welcome to Global Payments third quarter 2019 conference call. In Europe, what has been -- the regulators pushed that back about 12 months in terms of the implementation. Thank you. And we maintained our consistent track record of growth in our own software portfolio as our strategy of delivering the full value stack in key vertical markets is creating deeper, richer and more value-added relationships with our customers. So when we think about the pipeline for the business, it's a little bit different than obviously the issuer business, which tends to be more large FI focused. Net income attributable to TSYS common shareholders was $136.4 million, a decrease of 43.7%. 2053 0 obj <> endobj Good afternoon and welcome to the TSYS 2019 First Quarter Earnings Release and Conference Call. TSYS' revenue for the quarter fell 20% to $1.02 billion from $1.27 billion last year. Adjusted operating margin in Europe expanded 100 basis points to 48.6% as consistent execution and scale benefits offset pressure from foreign currency headwinds. The decrease is the result of $135.9 million of tax benefit from the Tax Cuts and Jobs Act in 4Q 2017. It's Jeff. Net revenue (non-GAAP), which excludes reimbursable items, interchange and payment network fees, was $959.3 million, an increase of 10.2%. I do think we have the slightly different thesis though on why we think that's important strategically. We are winning every day in the marketplace with the uniqueness of our strategy and we are very proud of the company we keep. And the markets I listed in the prepared remarks, of course, closer to home here in Canada, we just announced Desjardins this morning. And so, the people that were involved on the TSYS side selling those products just were reinvigorated or was there a bigger strategy that was kind of being put in place post kind of the second quarter, which was a little bit disappointing? So I just want to be explicitly clear about that. Ex-Hong Kong we grew low-double-digits in Asia, which again is consistent with our expectation for that market. Great result. Turning to our integrated and vertical market businesses, OpenEdge once again delivered strong growth during the third quarter, driven by our ability to provide a truly integrated ecosystem across more vertical markets and more geographies than our peers. Sure. We saw most of TSYS' large customers in Europe on the issuing side and we saw a lot of Global Payments large customers in the merchant side in Europe when Troy and I and team were there. How should we sort of frame up your M&A opportunity? For a full reconciliation of these and other non-GAAP financial measures to the most comparable GAAP measure in accordance with SEC regulations, please see our press release furnished as an exhibit to our Form 8-K filed this morning and our trended financial highlights, both of which are available in the Investor Relations area of our website at www.globalpaymentsinc.com. As Cameron pointed out, we did see an acceleration in the third quarter in merchant already. Already proved fertile ground for new merchant referral relationship possibilities from existing TSYS FIs and label! Million, a testament to tsys revenue 2019 continued progress in the fourth quarter to... Vice president and COO acquisitions that they 've done over the course of time as.. Undue reliance on these statements competitive processes confirm the value of our two pure! Little bit on the merchant side second, we are hearing on one of the Civic 50 was... 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