First Data Corporation (FDC) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $132 million, or $ 0.14 a share in the quarter, against a net loss of $126 million, or $126,000 a share in the last year period. On an adjusted basis, net profit for the quarter was $312 million, when compared with $171 million in the last year period. Revenue during the quarter went up marginally by 0.55 percent to $2,936 million from $2,920 million in the previous year period. Gross margin for the quarter contracted 16 basis points over the previous year period to 40.94 percent. Total expenses were 84.54 percent of quarterly revenues, down from 86.23 percent for the same period last year. This has led to an improvement of 170 basis points in operating margin to 15.46 percent.
Operating income for the quarter was $454 million, compared with $402 million in the previous year period.
"We are pleased to report another quarter of solid cash generation and debt reduction, healthy margin expansion and good earnings growth," said First Data chairman and chief executive officer Frank Bisignano. "During the quarter we saw tangible improvements in our North America merchant business, continued success with enterprise clients and strong growth in non-U.S. revenue," Bisignano added.
Operating cash flow improves significantlyFirst Data Corporation has generated cash of $1,660 million from operating activities during the nine month period, up 141.63 percent or $973 million, when compared with the last year period. The company has spent $338 million cash to meet investing activities during the nine month period as against cash outgo of $554 million in the last year period.
The company has spent $1,258 million cash to carry out financing activities during the nine month period as against cash outgo of $109 million in the last year period.
Cash and cash equivalents stood at $475 million as on Sep. 30, 2016, up 29.08 percent or $107 million from $368 million on Sep. 30, 2015.
Debt comes down
First Data Corporation has recorded a decline in total debt over the last one year. It stood at $18,891 million as on Sep. 30, 2016, down 10.79 percent or $2,286 million from $21,177 million on Sep. 30, 2015. Total debt was 54.85 percent of total assets as on Sep. 30, 2016, compared with 63.33 percent on Sep. 30, 2015. Debt to equity ratio was at 4.75 as on Sep. 30, 2016, down from 10.66 as on Sep. 30, 2015.
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