Vantiv Inc( NYSE: VNTV) reported an overall revenue rise of 12% yoy to $998.8 million in the second quarter of 2017 from $891.2 million in the prior corresponding period. Merchant Services net revenue surged 16% yoy to $449.1 million during the period driven by a 10% rise in transactions and a 5% rise in net revenue per transaction. Sales and marketing expenses for the segment surged 17% yoy to $162.6 million during the second quarter of 2017 on the back of solid new sales growth in partner channels. But, financial Institution Services net revenue fell 13% yoy to $80.9 million during the second quarter of 2017 hurt by compression from the Fifth Third Bank contract renewal, lapping the contribution from EMV card reissuance and fraud related services in the prior year period. De-conversion of a major client also hurt the segment’s business. As a result, the stock fell over 1.6% in the pre-market session on August 9th, 2017 (as of 8:00AM EDT; Source: Google finance). Adjusted EBITDA surged 10% yoy to $256.2 million during the quarter.
The group expects a revenue in the range of $2,100 to $2,120 million for full year of 2017 which is a rise of 10% to 11% as compared to the same period of last year. On a GAAP basis, net income per diluted share is forecasted to be in the range of $1.31 – $1.36while Pro forma adjusted net income per share is forecasted to be in the range of $3.31 – $3.36. Net revenue is forecasted to be in the range of $544 to $554 million for the third quarter of 2017 which is rise of 11% to 13% against the prior corresponding period.
Meanwhile, Vantiv is buying Worldpay for £8 billion while the overall group is expected to be worth of £22.2B. Accordingly Worldpay shares would be delisted from the London Stock Exchange.
The group made a transaction agreement with Fifth Third Bank this month to buy 19,790,000 shares of its Class A common stock directly from Fifth Third Bank at a price of $64.04 per share, leading to an overall purchase price of over $1.27 billion.
Vantiv stock rallied over 6.5% in the last four weeks (as of August 8th, 2017; Source: Google finance).