Q4 2024 Global Payments Inc Earnings Call Transcript
Key Points
- Global Payments Inc (GPN) achieved 6% adjusted net revenue growth for the full year 2024, with record adjusted operating margins and double-digit adjusted earnings per share growth.
- The company generated approximately $3 billion of adjusted free cash flow and returned $1.8 billion to shareholders.
- GPN expanded its POS and software business, achieving high teens new locations growth in 2024, particularly in the restaurant and retail verticals.
- The company successfully completed 17 customer implementations in its Issuer Solutions segment in 2024, ending the year with record traditional accounts on file of $885 million.
- GPN's operational transformation initiatives are expected to unlock more than $600 million of annual run rate operating income benefit by the first half of 2027, an increase from the initial outlook of $500 million.
- The company faced incremental FX headwinds, which impacted financial results despite achieving growth targets.
- GPN is in the process of exiting several small markets in Asia Pacific where it is subscale and sees limited opportunity for expansion.
- The company is experiencing softer hiring trends in its pay card business, negatively impacting growth by nearly a point.
- Commercial card volumes remain consistent with previous trends, as corporates continue to take a cautious approach to spending.
- GPN's transformation initiatives, while beneficial, are causing some disruption in the business, particularly in the first half of 2025.
Ladies and gentlemen, thank you for standing by, and welcome to Global Payments fourth-quarter and full-year 2024 earnings conference Call. (Operator Instructions) And as a reminder, today's conference will be recorded.
At this time, I'd like to turn the conference over to your host, Senior Vice President, Investor Relations, Winnie Smith. Please go ahead.
Good morning, and welcome to Global Payments fourth-quarter and full-year 2024 conference call. Our earnings release and the slides that accompany this call can be found on the Investor Relations area of our website at www.globalpayments.com.
Before we begin, I'd like to remind you that some of the comments made by management during today's conference call contain forward-looking statements about, among other matters, expected operating and financial results. These statements are subject to risks, uncertainties and other factors, including the impact
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