Global Payments Shares Updated Strategy and Medium-Term Outlook at Investor Conference
Global Payments Inc. (NYSE: GPN) held its 2024 Investor Conference in New York City, outlining its updated strategic focus and outlook for long-term value creation. The company aims to become the worldwide partner of choice for commerce solutions by:
1. Unifying its Merchant Solutions business globally, including harmonizing POS solutions under the Genius brand.
2. Prioritizing SMBs to deliver a full suite of software and commerce enablement solutions.
3. Capitalizing on growth opportunities in Issuer Solutions through cloud modernization and cross-selling initiatives.
4. Implementing operational transformation initiatives to unlock over $500 million of adjusted run-rate operating income benefits by early 2027.
The company's medium-term outlook for 2025-2027 includes mid-single-digit to high-single-digit adjusted net revenue growth, 50-100 bps of adjusted operating margin expansion, and low-teens adjusted EPS growth. Global Payments targets returning $7.5 billion to shareholders over the next three years.
Global Payments Inc. (NYSE: GPN) ha tenuto la sua Conferenza per gli Investitori 2024 a New York City, delineando il suo aggiornato focus strategico e le prospettive per la creazione di valore a lungo termine. L'azienda mira a diventare il partner mondiale preferito per soluzioni commerciali attraverso:
1. L'unificazione del suo business Merchant Solutions a livello globale, inclusa l'armonizzazione delle soluzioni POS sotto il marchio Genius.
2. La prioritizzazione delle piccole e medie imprese per fornire un'ampia gamma di soluzioni software e di abilitazione al commercio.
3. La capitalizzazione delle opportunità di crescita nelle Soluzioni Emittente attraverso la modernizzazione del cloud e iniziative di cross-selling.
4. L'implementazione di iniziative di trasformazione operativa per sbloccare oltre 500 milioni di dollari di benefici economici operativi regolati entro i primi mesi del 2027.
Le prospettive a medio termine dell'azienda per il periodo 2025-2027 includono una crescita del fatturato netto regolato a una cifra media da uno a due cifre alta, un'espansione del margine operativo regolato di 50-100 punti base e una crescita del EPS regolato a una cifra bassa. Global Payments prevede di restituire 7,5 miliardi di dollari agli azionisti nei prossimi tre anni.
Global Payments Inc. (NYSE: GPN) celebró su Conferencia de Inversores 2024 en la ciudad de Nueva York, delineando su enfoque estratégico actualizado y perspectivas para la creación de valor a largo plazo. La compañía tiene como objetivo convertirse en el socio mundial preferido para soluciones de comercio mediante:
1. La unificación de su negocio Merchant Solutions a nivel global, incluyendo la armonización de las soluciones POS bajo la marca Genius.
2. La priorización de las pymes para ofrecer una suite completa de soluciones de software y habilitación comercial.
3. La capitalización de oportunidades de crecimiento en las Soluciones de Emisor a través de la modernización de la nube y iniciativas de venta cruzada.
4. La implementación de iniciativas de transformación operativa para desbloquear más de 500 millones de dólares en beneficios de ingresos operativos ajustados para principios de 2027.
Las perspectivas a medio plazo de la empresa para 2025-2027 incluyen un crecimiento de ingresos netos ajustados de uno a dos dígitos altos, una expansión del margen operativo ajustado de 50 a 100 puntos básicos, y un crecimiento del EPS ajustado en la baja de dos dígitos. Global Payments tiene como objetivo devolver 7.5 mil millones de dólares a los accionistas durante los próximos tres años.
글로벌 페이먼츠 주식회사 (NYSE: GPN)는 뉴욕시에서 2024 투자자 회의를 개최하고, 장기적인 가치 창출을 위한 업데이트된 전략 초점 및 전망을 설명했습니다. 회사는 다음과 같은 방식으로 상업 솔루션의 세계적인 파트너로 자리매김 할 계획입니다:
1. 지니어스 브랜드 하에 POS 솔루션을 통합하는 것을 포함하여 글로벌하게 자사 상인 솔루션 비즈니스의 통합.
2. 중소기업에 우선 순위를 두어 소프트웨어 및 상업 활성화 솔루션의 전체 제품군을 제공.
3. 클라우드 현대화와 교차 판매 이니셔티브를 통해 발행자 솔루션의 성장 기회를 활용.
4. 2027년 초까지 5억 달러 이상의 조정된 운영 수익 혜택을 확보하기 위한 운영 혁신 이니셔티브의 시행.
회사의 2025-2027년 중기 전망은 조정된 순수입의 성장률이 중간 한 자릿수에서 높은 한 자릿수에 이르고, 조정된 운영 마진이 50-100bps 확대되며, 조정된 EPS 성장률도 낮은 10대에 이를 것으로 예상됩니다. 글로벌 페이먼츠는 향후 3년간 75억 달러를 주주들에게 환원할 계획입니다.
Global Payments Inc. (NYSE: GPN) a tenu sa Conférence des Investisseurs 2024 à New York, présentant son focus stratégique mis à jour et ses perspectives pour la création de valeur à long terme. L'entreprise vise à devenir le partenaire mondial de choix pour les solutions commerciales en :
1. Unifiant son activité Merchant Solutions à l'échelle mondiale, y compris l'harmonisation des solutions POS sous la marque Genius.
2. Priorisant les PME pour offrir une suite complète de solutions de logiciels et d'activation commerciale.
3. Tirant parti des opportunités de croissance dans les Solutions Émetteur grâce à la modernisation du cloud et aux initiatives de vente croisée.
4. Misançant sur des initiatives de transformation opérationnelle pour débloquer plus de 500 millions de dollars de bénéfices opérationnels ajustés d'ici début 2027.
Les perspectives à moyen terme de l'entreprise pour 2025-2027 incluent une croissance des revenus nets ajustés à un chiffre moyen de un à deux chiffres élevés, une expansion de la marge d'exploitation ajustée de 50 à 100 points de base et une croissance de l'EPS ajusté à un chiffre peu élevé. Global Payments vise à restituer 7,5 milliards de dollars aux actionnaires au cours des trois prochaines années.
Global Payments Inc. (NYSE: GPN) hielt seine Investorenkonferenz 2024 in New York City ab, in der das aktualisierte strategische Augenmerk und die Ausblicke zur Schaffung langfristigen Wertes umrissen wurden. Das Unternehmen hat sich zum Ziel gesetzt, der weltweit bevorzugte Partner für Handelslösungen zu werden:
1. Die globale Einheitlichkeit seines Merchant Solutions-Geschäfts, einschließlich der Harmonisierung von POS-Lösungen unter dem Genius-Brand.
2. Die Priorisierung kleiner und mittlerer Unternehmen, um eine vollständige Suite von Software- und Handelslösungen anzubieten.
3. Die Nutzung von Wachstumschancen im Bereich Emittent Solutions durch Cloud-Moderne und Cross-Selling-Initiativen.
4. Die Implementierung von operativen Transformationsinitiativen, um über 500 Millionen Dollar an umgerechneten Betriebsgewinnen bis Anfang 2027 freizusetzen.
Der mittelfristige Ausblick des Unternehmens für 2025-2027 umfasst ein Wachstum des umgerechneten Nettoumsatzes im mittleren einstelligen bis hohen einstelligen Bereich, eine Erweiterung der umgerechneten Betriebsmarge von 50-100 Basispunkten und ein Wachstum des umgerechneten EPS im niedrigen zweistelligen Bereich. Global Payments plant, 7,5 Milliarden Dollar an die Aktionäre in den nächsten drei Jahren zurückzugeben.
- Unifying POS businesses under the Genius brand to streamline operations
- Targeting $7.5 billion in shareholder returns over the next three years
- Expecting to unlock over $500 million in adjusted run-rate operating income benefits by early 2027
- Projecting low-teens adjusted EPS growth for 2026-2027
- Anticipating 50-100 bps of adjusted operating margin expansion in 2026-2027
- Pursuing dispositions of select assets, which may impact short-term revenue
Insights
Global Payments' strategic update and medium-term outlook present a mixed picture for investors. The company's focus on operational transformation is promising, targeting over
However, the projected growth rates are moderate. The
The strategic shift towards SMBs and the unification of POS businesses under the Genius brand could enhance market position, but execution risks remain. The potential disposition of select assets, including evaluating options for the Issuer business, introduces uncertainty that investors should monitor closely.
Global Payments' strategy update reflects a keen awareness of market trends and competitive pressures. The focus on unifying their POS solutions under the Genius brand is a smart move to strengthen their market position and simplify their offering for clients. This could lead to improved brand recognition and potentially higher market share in the fragmented payments industry.
The emphasis on serving SMBs with a full suite of software and commerce solutions aligns well with the growing demand for integrated payment and business management tools in this segment. However, this is a highly competitive space with numerous fintech players vying for market share.
The company's cloud modernization efforts in Issuer Solutions and cross-selling initiatives indicate a push towards more recurring revenue streams and deeper client relationships. This could provide more stability to their revenue model but may also require significant investment in technology and sales efforts.
Overall, the strategy seems defensive yet forward-looking, aiming to solidify Global Payments' position in a rapidly evolving industry landscape.
- Market leader at intersection of software and payments details strategy to provide clients with world-class solutions that make everyday commerce better.
- Aligning brand identity across assets and go-to-market activities, including unifying POS businesses under the Genius brand.
- Pursuing dispositions of select assets to accelerate value creation.
- Streamlining and simplifying business through our operational transformation to unlock substantial value and support sustainable growth.
- Delivering double-digit adjusted EPS growth in 2025, accelerating to low-teens in 2026 and 2027.
-
Targeting shareholders returns of
$7.5 billion
“Our aspiration is to become the worldwide partner of choice for commerce solutions,” said Cameron Bready, chief executive officer. “We will deliver on that ambition by sharpening our strategic focus to emphasize the markets where we are best positioned to compete and win. We are transforming how we operate to unleash our full potential, elevate our client experiences and provide market leading solutions that make everyday commerce better.”
Bready continued, “In Merchant Solutions, we are fully unifying our business worldwide. We will harmonize products and capabilities, including our POS solutions under a common brand, Genius, and leverage our vast distribution channels to extend them globally. We are prioritizing SMBs to deliver our full suite of differentiated software and commerce enablement solutions they need to run and grow their businesses.
“In Issuer Solutions, we are capitalizing on meaningful growth opportunities through our cloud modernization and cross-selling initiatives, while also leveraging the strategic value of this business to extend our capabilities across the payments value chain. We will continue to explore and evaluate options for the Issuer business that may serve to achieve our strategic objectives and accelerate value creation for shareholders.”
Bready concluded, “Global Payments is exceptionally well-positioned to execute our strategy. By taking advantage of the opportunities ahead of us, we will continue to extend our competitive advantage and drive substantial returns for our shareholders.”
Josh Whipple, chief financial officer, added, “We are focused on aligning our entire organization to capitalize on our growth opportunities. We anticipate our operational transformation initiatives will unlock more than
Medium-Term Outlook
Global Payments also provided its medium term outlook for 2025 through 2027.
|
Medium-term outlook* |
||
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Preliminary 2025 |
2026-2027 |
|
Adjusted net revenue |
Mid-single-digit growth |
Mid- to high-single-digit growth |
|
Adjusted operating margin |
+50 bps of expansion |
50-100 bps of expansion |
|
Adjusted EPS |
~ |
Low-teens growth |
|
*Outlook represents annual growth expectations; adjusted net revenue outlook excludes any future dispositions. |
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Investor Conference Materials and Webcast
Slides and videos from today’s presentation are available for download and playback on the Global Payments Investor Relations website at investors.globalpayments.com.
Non-GAAP Financial Measures
Global Payments includes in this news release certain non-GAAP financial measures, including adjusted net revenue, adjusted operating income, adjusted operating margin, and adjusted EPS. Management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. Additionally, management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. These non-GAAP financial measures reflect management's judgment of particular items, may not be comparable to similarly titled measures reported by other companies, and should be considered in addition to, and not as substitutes for, the GAAP measures.
Adjusted net revenue excludes gross-up related payments associated with certain lines of business to reflect economic benefits to the company. On a GAAP basis, these payments are presented gross in both revenues and operating expenses. Management believes adjusted net revenue more closely reflects the economic benefits to the company’s core business and allows for better comparisons with industry peers.
Adjusted operating income and adjusted EPS exclude acquisition-related amortization expense, share-based compensation expense, acquisition, integration and separation expense, gain or losses in business divestitures, and certain other items specific to each reporting period. The tax rate used in determining the income tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue.
Forward-Looking Measures
The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where a reconciliation to the corresponding GAAP measure is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measure. The company is unable to address the probable significance of the unavailable information.
About Global Payments
Global Payments Inc. (NYSE: GPN) is a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world.
Headquartered in
Forward-Looking Statements
Investors are cautioned that some of the statements we use in this release contain forward-looking statements and are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks and uncertainties that could significantly affect the financial condition, results of operations, business plans and the future performance of Global Payments. Actual events or results might differ materially from those expressed or forecasted in these forward-looking statements. Accordingly, we cannot guarantee that our plans and expectations will be achieved. Examples of forward-looking statements include, but are not limited to, statements we make regarding future financial and operating results, including revenue, earnings estimates, and liquidity, deleveraging plans, management’s expectations regarding future plans, objectives and goals; market and growth opportunities; capital available for allocation; the effects of general economic conditions on our business; statements about the benefits of acquisitions or divestitures, including future financial and operating results, and the successful integration of acquisitions or completion of anticipated benefits of strategic or operational initiatives; statements regarding our success and timing in developing and introducing new services or products and expanding our business; and other statements regarding our future financial performance and Global Payments’ plans, objectives, expectations and intentions. Statements can generally be identified as forward-looking because they include words such as “believes,” “anticipates,” “expects,” “intends,” “plan,” “forecast,” “could,” “should,” or words of similar meaning. Although we believe that the plans and expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our plans and expectations will be attained, and therefore actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.
In addition to factors previously disclosed in Global Payments’ reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the effects of global economic, political, market, health and social events or other conditions; foreign currency exchange, inflation and rising interest rate risks; difficulties, delays and higher than anticipated costs related to integrating the businesses of acquired companies, including with respect to implementing controls to prevent a material security breach of any internal systems or to successfully manage credit and fraud risks in business units; the effect of a security breach or operational failure on our business; failing to comply with the applicable requirements of Visa, Mastercard or other payment networks or card schemes or changes in those requirements; the ability to maintain Visa and Mastercard registration and financial institution sponsorship; the ability to retain, develop and hire key personnel; the diversion of management’s attention from ongoing business operations; the continued availability of capital and financing; increased competition in the markets in which we operate and our ability to increase our market share in existing markets and expand into new markets; our ability to safeguard our data; risks associated with our indebtedness; our ability to meet environmental, social or governance targets, goals and commitments; the potential effect of climate change including natural disasters; the effects of new or changes in current laws, regulations, credit card association rules or other industry standards on us or our partners and customers, including privacy and cybersecurity laws and regulations; and other events beyond our control, and other factors included in the “Risk Factors” section in our most recent Annual Report on Form 10-K and in other documents that we file with the SEC, which are available at https://www.sec.gov.
These cautionary statements qualify all of our forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date they are made and should not be relied upon as representing our plans and expectations as of any subsequent date. While we may elect to update or revise forward-looking statements at some time in the future, we specifically disclaim any obligation to publicly release the results of any revisions to our forward-looking statements, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240925192698/en/
Investor Contact:
Winnie Smith 770.829.8478
investor.relations@globalpay.com
Media Contact:
Emily Edmonds 770.829.8755
media.relations@globalpay.com
Source: Global Payments Inc.
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