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TOTAL SYSTEM SERVICES INC

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2019 10-Q, filed Jul 31, 2019. Its latest SEC filing is a 15-15D from Sep 30, 2019.

The sections below describe the company as of the FY2018 annual report.

What Did They Do?

Provides payment processing and merchant services to financial institutions, businesses and merchant acquirers, and prepaid cards and financial services to underbanked consumers and businesses.

How Did They Make Money?

Financial and nonfinancial institutions pay for issuer processing under long-term contracts, with charges tied to accounts, transactions and related services; merchant processing fees are mainly based on sales volume and transactions handled. Consumer Solutions earns a portion of cardholder service fees and interchange; cardholders pay per transaction or through monthly or annual plans.

FY2018 revenue

Who Were Their Customers?

Financial and nonfinancial institutions buy issuer processing; individual merchants contract for merchant services, while merchant acquirers, independent sales organizations and financial institutions also buy processing. Consumers and businesses use the prepaid-card, payroll-card and deposit-account programs.

Did Revenues Turn Into Profits?

Yes. It kept 14 cents of every revenue dollar as net income in FY2018 and turned 23 cents into free cash flow.

Operating income, FY2018
20% of revenue
▲ +12% vs FY2017 ($734M, 15%)
Net income, FY2018
14% of revenue
▼ −2% vs FY2017 ($586.2M, 12%)
Free cash flow, FY2018
23% of revenue
▲ +18% vs FY2017 ($787M, 16%)

How Were They Changing?

Since the FY2018 annual report
Latest quarter: Q2 FY2019, the three months to Jun 30, 2019
Revenue
▲ +3%
vs $1B in Q2 FY2018
Net income
▲ +14%
vs $142.4M in Q2 FY2018
  • Sep 20, 2019 TSYS merged into Global Payments Global Payments survived the merger; TSYS asked the NYSE to remove its shares from listing.

Grew. Revenue grew 65% in 4 years, from $2.4B in FY2014 to $4B in FY2018, about 13% a year.

Who Did They Compete With?

Competes with First Data, Worldpay, Global Payments, Square, Elavon, Green Dot, and InComm

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