First Data Corporation (FDC) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $36 million, or $ 0.04 a share in the quarter, against a net loss of $56 million, or $0.06 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $258 million, or $0.28 a share compared with $220 million or $0.24 a share, a year ago. Revenue during the quarter went up marginally by 0.86 percent to $2,801 million from $2,777 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 39.34 percent. Total expenses were 88.33 percent of quarterly revenues, down from 91.43 percent for the same period last year. This has led to an improvement of 310 basis points in operating margin to 11.67 percent.
Operating income for the quarter was $327 million, compared with $238 million in the previous year period.
“We delivered another quarter of solid earnings growth as our efforts to increase revenue, manage costs, and improve our capital structure are showing up in our bottom line,” said First Data chairman and chief executive officer Frank Bisignano. “We continue to make steady progress across key initiatives such as expanding our presence in the enterprise space, steadily improving the foundations of our SMB direct business in North America, and growing our international franchise. We reiterate our previously provided financial guidance for 2017 and over the medium term," Bisignano added.
Operating cash flow improves
First Data Corporation has generated cash of $421 million from operating activities during the quarter, up 9.07 percent or $35 million, when compared with the last year period. The company has spent $116 million cash to meet investing activities during the quarter as against cash outgo of $123 million in the last year period.
The company has spent $187 million cash to carry out financing activities during the quarter as against cash outgo of $373 million in the last year period.
Cash and cash equivalents stood at stood at $503 million as at Mar. 31, 2017.
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