Fidelity National Info says 3rd-quarter profit rises as operating gains offset revenue decline

Fidelity National Info posts higher 3Q profit

JACKSONVILLE, Fla. — FIS, which provides technology services to financial firms, said Wednesday its third-quarter profit jumped 55 percent as lower costs offset reduced software license and professional service revenue.

FIS — formerly known as Fidelity National Services Inc. before its Oct. 1 acquisition of Metavante Technologies — reported net income of $67.6 million, or 35 cents per share, for the three months ended Sept. 30. That was up from a profit of $43.6 million, or 23 cents per share, in the same quarter a year ago.

Excluding one-time items, FIS reported an adjusted profit of $90.2 million, or 46 cents per share. That result fell just shy of the consensus forecast of analysts surveyed by Thomson Reuters, who expected a profit of 47 cents per share, on average.

Revenue dipped nearly 4 percent to $850.7 million, also short of analysts’ forecast of $869.6 million. The revenue decline was a more modest 1.9 percent accounting for currency fluctuations.

FIS attributed the decline primarily to lower revenue from software licenses and professional services that the company provides to banks and other financial companies. Jacksonville-based FIS provides banking and payments technologies to more than 14,000 clients in more than 90 countries.

The dip in revenue was offset by improved operating performance across all major lines of business, FIS said. Free cash flow — which measures cash from operations, minus capital spending — rose 12 percent to $132.8 million.

FIS reported results after its shares rose 32 cents, or about 1.3 percent, to close at $24.83.

The company will include Metavante’s operations in its financial results beginning in the fourth quarter.