FIS (NYSE:FIS), a financial services technology provider, today announced fourth quarter and full year 2023 results.
On a GAAP basis, excluding $1.2 billion of revenue classified as discontinued operations, revenue fell 1% in the final quarter of 2023 compared to the prior-year period to approximately $2.5 billion.
GAAP net income attributable to common shareholders from continuing operations was $64 million, down 41% from the prior-year period. Including discontinued operations, GAAP net income attributable to common stockholders was $251 million, or $0.42 per diluted share.
On an adjusted basis, revenue was flat compared to the prior-year period, driven by adjusted recurring revenue growth of 7%, offset by a 16% decrease in adjusted non-recurring revenue. Adjusted EBITDA margin increased 70 basis points (bps) over the prior-year period to 42.1% primarily due to cost efficiencies.
Adjusted net income from continuing operations was approximately $558 million and adjusted EPS decreased 4% compared to the prior-year period to $0.94 per diluted share, primarily due to a $0.07 headwind related to higher interest cost. Including discontinued operations, adjusted net income was approximately $985 million and adjusted EPS decreased 2% compared to the prior-year period to $1.67 per diluted share, primarily due to a $0.05 headwind related to with higher interest costs.
The company remains committed to shareholder returns and is raising its goal to repurchase at least $4.0 billion in shares by the end of 2024, up from its previous target of at least $3.5 billion, including $510 million in shares repurchased in fourth quarter of 2023. Additionally, the Company continues to target a dividend payout ratio of 35% of adjusted net earnings, excluding equity method (EMI) investment earnings (losses).
On February 25, 2024, the FIS Board of Directors approved a regular quarterly dividend of $0.36 per common share. The dividend is payable on March 22, 2024, to shareholders at the close of business on March 8, 2024.