Payment processor Global Payments has seen adjusted net revenues increase by 5% in Q1 2023, to $2.05bn, and adjusted operating margins expanding 200 basis points to 43.1%. The company also closed its acquisition of merchant acquirer and payment processor EVO Payments, as well as closing the divestiture of both its Netspend consumer business and Gaming Solutions business.
Merchant Solutions continued to be the main driver behind Global Payments’ revenues, growing 8.9% to $1.46bn; the segment represents roughly 75% of total adjusted net revenue. Issuer Solutions, including B2B, now represents the other 25% of total revenue and grew 10.8% for the quarter to $490.2m.
Consumer Solutions, meanwhile, saw a decline of -34% to $129.2m, though this was likely affected by the sale of Netspend’s consumer business and the broader macroeconomic outlook. Additionally, despite this decrease in revenues, the company highlighted that consumer transaction volumes grew into the double digits year-on-year and that it also saw growth in major consumer accounts.
Q1 2023 was Global Payments’ best first quarter performance in four years and also saw the company’s first beat-and-raise, when a company surpasses quarterly earnings estimates and raises full-year guidance, in 18 months.
The company now expects adjusted net revenue of $8.64bn-8.74bn for 2023 (growth of 7-8%, up from its previous projection of 6-7%) and continues to expect its adjusted operating margin to grow by as much as 120 basis points for the year. It will also see CEO Jeffrey Sloan step down from his role on 1 June, to be replaced by current President and COO Cameron Bready.
Who does Global Payments compete with?