About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Fiserv Overall Revenues Improve in Fourth Quarter, But Financial Segment is Down 4% for 2009

Subscribe to our newsletter

After a difficult third quarter, Fiserv has indicated that its overall financial prospects picked up in the fourth quarter of 2009, with a 2% increase in net revenue on the previous year’s figures at US$1.01 billion. This means that the vendor’s total adjusted revenue for the year was down 1% on 2008, from US$3.89 billion in 2008 to US$3.87 billion in 2009. However, the payments segment of the business contributed the largest percentage of growth for the vendor overall, at 50%, and the Financial segment revenue declined overall for the year by 4%.

“We finished the year with a strong fourth quarter highlighted by positive revenue growth, record December sales and superior free cash flow providing momentum as we enter the new year,” says Jeffery Yabuki, president and CEO of Fiserv.

The payments segment contributed to the 2% revenue growth for the quarter and an overall increase of 1% for the year. The Financial segment, however, experienced 0% revenue growth for the quarter and a decline in revenue of 4% for the year.

It was certainly a rather quiet year for its corporate actions solution, with not a single public client win. The vendor did however announce in September that it had invested in its eVent corporate actions automation solution and released a new upgrade, aimed at improving the flexibility of election and instruction processing and the notifications process with more customisable options. It is no doubt hoping that this investment will pay off in 2010 with the signing of new clients.

As noted by Geoff Harries, vice president of product strategy for the Investment Services division at Fiserv, when he spoke to Reference Data Review in October last year, the vendor is looking to gain more traction with its corporate actions solution in the buy side community. Harries noted that the client pipeline was looking a lot “healthier” as firms had finally begun to crack the door back open on corporate actions automation projects that were put on hold as a result of the economic climate. Fiserv is therefore pitching its solution at the larger end of the asset management spectrum, the “top five category”, according to Harries. “Asset managers’ margins are slimmer in this current market environment and they are therefore less able to absorb losses in their P&L and this means they are more willing to invest in automation.”

Fiserv has indicated that it expects 2010 adjusted internal revenue growth to be in the range of 1% to 3%. It will be interesting to see how much of this growth is accounted for by the Financial segment of the business in comparison to the traditionally more profitable Payments segment.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The time is now for buy-side firms to re-evaluate their approach to data management

Increased cost pressures, rising volumes of data, and the challenges of legacy systems are pushing buy-side firms to re-evaluate current approaches to data management. The aim is cost-effective, optimised data management that can provide flexibility and scalability, support various data types including ESG data, and ensure headroom for development in line with business objectives. Achieving...

BLOG

Cboe Global Markets Selects Snowflake for Next Leg of Journey to Cloud

Cboe Global Markets is working with Snowflake to migrate its corporate data and analytics from on-premises systems to the cloud. The adoption of Snowflake’s data cloud continues Cboe’s journey to cloud and is expected to transform the company’s data and analytics infrastructure into a modern cloud architecture, bringing speed, scalability, and efficiency to its handling...

EVENT

Data Management Summit New York City

Now in its 12th year, the Data Management Summit (DMS) in New York brings together the North American, capital markets enterprise data management community, to explore the evolution of data strategy and how to leverage data to drive compliance and business insight.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...