Global Payments Reports Strong Q3 2022, Driven by Merchant Solutions Growth
Global Payments, a leading payment technology company, has reported a strong third quarter in 2022. The company saw an adjusted revenue increase of 3% year-over-year, reaching $2.06 billion. Notably, the merchant solutions segment drove this growth with a 6.8% increase, while the issuer solutions segment grew by 1.7%.
The company's adjusted operating margin also improved significantly, growing by 240 basis points to 45.2%. This was largely driven by the merchant solutions segment, which is expected to represent approximately 75% of adjusted net revenue following the sale of Netspend's consumer business and the acquisition of EVO Payments. Both these transactions are expected to close in the first quarter of 2023, subject to approvals.
On a constant currency basis, excluding the impact of exiting Russia and the sale of Netspend's consumer business, adjusted net revenue growth would have been 6%. Global Payments offers a diverse range of payment methods, including major domestic cards, bank transfers, wallets, cryptocurrencies, cash-based vouchers, and flexible 'buy now, pay later' options, all integrated seamlessly across multiple channels. This comprehensive approach sets it apart from competitors like Amazon, which focus more on dynamic pricing and customer service.
The consumer solutions segment saw a 22% decline in adjusted revenue in Q3 2022, likely due to the Netspend sale. Despite this, the company expects net revenue growth of 10-11% over 2021, excluding dispositions and on a constant currency basis.
In summary, Global Payments' third quarter was marked by strong growth in merchant solutions and an improved operating margin. The company's diverse payment offerings continue to set it apart in the market. With the expected closure of the Netspend and EVO Payments transactions, the company looks forward to further growth and increased market share.
