E-commerce services provider First Data Corporation (NYSE:FDC) hailed 2016 as a turnaround year, as it stormed into profit.
Net income for the year was positive at US$660mln, versus a loss of US$1.27bn in 2015.
That was despite revenue being virtually flat at US$6.6bn.
For the fourth quarter 2016, net income attributable to First Data was US$192 million, equivalent to 21 cents a share, compared to a net loss of US$1.2 billion in the prior year period.
The previous year period included debt extinguishment charges and one-off expenses totaling around US$1.3 billion.
On an adjusted basis, fourth quarter net income clocked in at US$365mln, or 39 cents a share, up 35% year-on-year.
“First Data delivered a full-year profit, generating a nearly US$2 billion improvement from our 2015 net income. We’re proud of that turnaround, but we’re intensely focused on the hard work still ahead,” said First Data chairman and chief executive officer, Frank Bisignano.
“Throughout this year and beyond, our team is aligned to deliver solid earnings growth, disciplined expense management, strong cash generation, and continued organic deleveraging, all while strengthening service and driving innovation to serve and expand our client base,” Bisignano added.
Shares in First Data were up 3.1% in late morning trading.
Story by ProactiveInvestors