Analysis of Reportable Segments
Fidelity National Information Services Inc. operates in 3 segments: Banking Solutions (Banking); Merchant Solutions (Merchant); and Capital Market Solutions (Capital Markets).
Segment Profit Margin
Fidelity National Information Services Inc., profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Banking Solutions (Banking) | 42.56% | 44.93% | 43.00% | 41.78% | 39.50% |
| Merchant Solutions (Merchant) | 47.31% | 50.31% | 46.51% | 49.38% | 21.38% |
| Capital Market Solutions (Capital Markets) | 49.76% | 48.44% | 47.01% | 46.14% | 45.21% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Banking Solutions Profit Margin Trends
- The profit margin for Banking Solutions exhibited a generally upward trend from 2018 through 2021, increasing from 39.5% to 44.93%. This indicates a steady improvement in profitability over this four-year period. However, in 2022, the margin declined to 42.56%, representing a slight contraction compared to the previous year, though it remained above the initial 2018 level.
- Merchant Solutions Profit Margin Trends
- Merchant Solutions experienced significant growth in profit margin from 2018 to 2019, jumping sharply from 21.38% to 49.38%. Following this steep increase, margins slightly declined over the next three years but maintained relatively high levels, with values of 46.51% in 2020, 50.31% in 2021, and 47.31% in 2022. Despite some fluctuations, the segment sustained substantially improved profitability compared to 2018.
- Capital Market Solutions Profit Margin Trends
- The profit margin for Capital Market Solutions showed a consistent and gradual increase throughout the five-year period. Starting at 45.21% in 2018, it increased steadily each year, reaching 49.76% by 2022. This upward progression implies ongoing enhancements in operational efficiency or pricing power in this segment.
- Comparative Insights
- Among the three segments, Merchant Solutions demonstrated the most volatility, highlighted by a remarkable surge in 2019 followed by modest declines and partial recoveries. Banking Solutions showed steady improvement until a modest dip in 2022, while Capital Market Solutions delivered the most consistent enhancement over time. By the end of the period, Capital Market Solutions held the highest profit margin, followed closely by Banking Solutions and Merchant Solutions, both of which settled at levels significantly above their initial 2018 figures.
Segment Profit Margin: Banking Solutions (Banking)
Fidelity National Information Services Inc.; Banking Solutions (Banking); segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 2,854) | 2,874) | 2,556) | 2,454) | 2,256) |
| Revenue | 6,706) | 6,396) | 5,944) | 5,873) | 5,712) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 42.56% | 44.93% | 43.00% | 41.78% | 39.50% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenue
= 100 × 2,854 ÷ 6,706 = 42.56%
The financial data for the banking solutions segment over the five-year period from 2018 to 2022 reveals several notable trends and patterns.
- Revenue
- The revenue has shown a consistent upward trajectory each year. Starting at 5,712 million USD in 2018, it increased gradually to reach 6,706 million USD by 2022. This represents a compound growth trend indicative of expanding business volume or improved pricing strategies within the segment.
- Adjusted EBITDA
- The adjusted EBITDA follows a similar positive trend, growing from 2,256 million USD in 2018 to a peak of 2,874 million USD in 2021 before slightly declining to 2,854 million USD in 2022. Despite the minor decrease in the last year, the overall performance reflects growing operational profitability over the period.
- Segment Profit Margin
- The segment profit margin, representing the percentage of revenue converted into profit at the segment level, has broadly improved from 39.5% in 2018 to a high of 44.93% in 2021. However, there was a reduction to 42.56% in 2022. This suggests that although the segment has enhanced efficiency and profitability over the initial years, some challenges impacted margins in the most recent year.
- Overall Observations
- The data indicates steady growth in revenue accompanied by rising profitability up to 2021, reflecting successful segment performance. The slight declines observed in adjusted EBITDA and profit margin in 2022 warrant further investigation into potential cost pressures or revenue mix changes affecting profitability. Nonetheless, the general trend points to a strong and growing segment with efficient operations over the majority of the period analyzed.
Segment Profit Margin: Merchant Solutions (Merchant)
Fidelity National Information Services Inc.; Merchant Solutions (Merchant); segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 2,258) | 2,262) | 1,752) | 994) | 59) |
| Revenue | 4,773) | 4,496) | 3,767) | 2,013) | 276) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 47.31% | 50.31% | 46.51% | 49.38% | 21.38% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenue
= 100 × 2,258 ÷ 4,773 = 47.31%
- Adjusted EBITDA
- The Adjusted EBITDA exhibited a substantial upward trajectory from 2018 through 2021, increasing from 59 million to a peak of 2,262 million. However, in 2022, there was a slight decrease to 2,258 million, indicating a plateau in profitability at this high level.
- Revenue
- The revenue demonstrated consistent and significant growth over the five-year period, starting at 276 million in 2018 and reaching 4,773 million by 2022. This indicates a strong expansion in the segment’s overall sales and market demand.
- Segment Profit Margin
- The segment profit margin showed notable volatility between 2018 and 2022. After a low margin of 21.38% in 2018, there was a sharp increase to approximately 49% in 2019. The margin slightly declined to 46.51% in 2020, then increased again to over 50% in 2021, before decreasing moderately to 47.31% in 2022. Despite fluctuations, the profit margin generally maintained a level close to or above 46%, reflecting sustained operational profitability.
Segment Profit Margin: Capital Market Solutions (Capital Markets)
Fidelity National Information Services Inc.; Capital Market Solutions (Capital Markets); segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 1,375) | 1,271) | 1,147) | 1,129) | 1,081) |
| Revenue | 2,763) | 2,624) | 2,440) | 2,447) | 2,391) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 49.76% | 48.44% | 47.01% | 46.14% | 45.21% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenue
= 100 × 1,375 ÷ 2,763 = 49.76%
- Revenue
- The revenue of the segment demonstrated a generally upward trend over the five-year period. Starting at $2,391 million in 2018, it increased moderately to $2,447 million in 2019 and showed a slight dip to $2,440 million in 2020. However, the revenue rose significantly in the subsequent years, reaching $2,624 million in 2021 and $2,763 million in 2022, reflecting consistent growth after the minor decline in 2020.
- Adjusted EBITDA
- Adjusted EBITDA also showed a positive trajectory throughout the period. It increased from $1,081 million in 2018 to $1,129 million in 2019, followed by incremental increases to $1,147 million in 2020, $1,271 million in 2021, and $1,375 million in 2022. This reflects an overall strengthening of earnings before interest, taxes, depreciation, and amortization, indicating improved operational performance.
- Segment Profit Margin
- The segment profit margin exhibited a steady improvement over the years. Starting at 45.21% in 2018, it increased each year without exception, reaching 46.14% in 2019, 47.01% in 2020, 48.44% in 2021, and finally 49.76% in 2022. This trend demonstrates an increasing level of profitability relative to revenue, signaling enhanced efficiency and cost management in the segment.
- Overall Insights
- The data reveals consistent growth in both revenue and adjusted EBITDA from 2018 through 2022, with a minor revenue setback observed in 2020. The steady increase in the segment profit margin further suggests that profitability and operational efficiency have improved continuously. This positive trend indicates sound financial health and effective management within the segment, contributing to higher profitability despite changing market conditions.
Segment Capital Expenditures to Depreciation
Fidelity National Information Services Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Banking Solutions (Banking) | 0.83 | 0.76 | 0.97 | 1.18 | 0.98 |
| Merchant Solutions (Merchant) | 1.43 | 1.16 | 1.20 | 1.22 | 1.10 |
| Capital Market Solutions (Capital Markets) | 0.83 | 0.70 | 0.82 | 1.24 | 1.30 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Banking Solutions (Banking)
- The capital expenditures to depreciation ratio for Banking Solutions experienced notable fluctuations over the period analyzed. Starting at 0.98 in 2018, the ratio increased to 1.18 in 2019, indicating an increase in capital spending relative to depreciation. However, the trend reversed in 2020, dropping back to 0.97, followed by a further decrease to 0.76 in 2021. The ratio showed a modest recovery in 2022, rising to 0.83, though it remained below the levels seen in 2018 and 2019. Overall, the trend suggests a period of increased investment around 2019, followed by a reduction in capital expenditures relative to depreciation, with some rebound toward the end of the period.
- Merchant Solutions (Merchant)
- This segment's capital expenditures to depreciation ratio demonstrated a generally upward trajectory. Beginning at 1.10 in 2018, the ratio grew steadily to 1.22 in 2019 and maintained a relatively high level at 1.20 in 2020. There was a slight decrease to 1.16 in 2021; however, it sharply increased to reach the highest value of 1.43 in 2022. This consistent elevation above 1.0 indicates sustained or increasing levels of capital investment relative to asset depreciation, notably peaking in the latest year analyzed.
- Capital Market Solutions (Capital Markets)
- The ratio for Capital Market Solutions showed a decreasing tendency followed by stabilization at a lower level. Initially recorded at 1.30 in 2018, it edged down to 1.24 in 2019. Thereafter, a significant decline occurred, with the ratio falling to 0.82 in 2020 and continuing lower to 0.70 in 2021. In 2022, a slight uptick to 0.83 was observed. This pattern indicates a reduction in capital expenditures relative to depreciation after 2019, which may reflect more conservative investment or a shift in asset management strategy within this segment.
Segment Capital Expenditures to Depreciation: Banking Solutions (Banking)
Fidelity National Information Services Inc.; Banking Solutions (Banking); segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 494) | 442) | 498) | 617) | 485) |
| Depreciation and amortization, including purchase accounting amortization | 597) | 583) | 513) | 523) | 494) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.83 | 0.76 | 0.97 | 1.18 | 0.98 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization, including purchase accounting amortization
= 494 ÷ 597 = 0.83
- Capital Expenditures
- Capital expenditures displayed fluctuation over the five-year period. Starting at $485 million in 2018, they increased significantly to $617 million in 2019. Subsequently, there was a decline to $498 million in 2020, followed by a further reduction to $442 million in 2021. In 2022, capital expenditures rose modestly to $494 million. Overall, the trend indicates variability with a peak in 2019 and a general decrease thereafter, partially reversed in the final year observed.
- Depreciation and Amortization, Including Purchase Accounting Amortization
- Depreciation and amortization expenses showed a steady upward trend. Beginning at $494 million in 2018, the figure grew moderately to $523 million in 2019 and then slightly decreased to $513 million in 2020. After this minor dip, the expenses increased notably to $583 million in 2021 and continued to rise to $597 million in 2022. This pattern reflects an overall increasing expense in depreciation and amortization, especially pronounced in the later years.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation decreased over the period after peaking in 2019. It began at 0.98 in 2018, increased to 1.18 in 2019, signaling that capital expenditures exceeded depreciation that year. However, the ratio subsequently declined to 0.97 in 2020, then sharply dropped to 0.76 in 2021, and slightly recovered to 0.83 in 2022. The declining ratio suggests that capital expenditures have become smaller relative to depreciation over time, particularly from 2020 onward.
Segment Capital Expenditures to Depreciation: Merchant Solutions (Merchant)
Fidelity National Information Services Inc.; Merchant Solutions (Merchant); segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 514) | 401) | 365) | 144) | 11) |
| Depreciation and amortization, including purchase accounting amortization | 360) | 346) | 305) | 118) | 10) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.43 | 1.16 | 1.20 | 1.22 | 1.10 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization, including purchase accounting amortization
= 514 ÷ 360 = 1.43
The annual data for the Merchant Solutions segment reveals several notable trends in capital expenditures and depreciation expenses over the five-year period ending December 31, 2022.
- Capital Expenditures
- Capital expenditures increased substantially from US$11 million in 2018 to US$514 million in 2022. The most notable leap occurred between 2019 and 2020, where expenditures rose from US$144 million to US$365 million, followed by a steady increase each year through 2022. This pattern suggests a significant and sustained investment phase in the Merchant Solutions segment, likely aimed at growth or modernization initiatives.
- Depreciation and Amortization
- Depreciation and amortization expenses also rose considerably during the same timeframe, from US$10 million in 2018 to US$360 million in 2022. The upward trend is consistent annually, indicating increasing capital asset bases subject to depreciation and amortization. This aligns logically with the rise in capital expenditures, reflecting the capitalization of new assets and the associated expense recognition.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation fluctuated mildly but remained above 1.0 throughout the period, starting at 1.1 in 2018 and increasing to 1.43 by 2022. The ratio dipped slightly in 2021 to 1.16 but recovered in 2022. A ratio above 1.0 typically indicates that the segment is investing more in assets than is being expensed through depreciation, suggesting asset growth and potential expansion. The increase to 1.43 in 2022 points to even greater levels of investment relative to asset consumption or expiration.
Overall, the data indicates a robust capital investment trajectory in the Merchant Solutions segment, with corresponding rises in depreciation expenses reflecting an expanding asset base. The ratio analysis supports the inference of continuous asset growth and strategic investment focus over the five-year span.
Segment Capital Expenditures to Depreciation: Capital Market Solutions (Capital Markets)
Fidelity National Information Services Inc.; Capital Market Solutions (Capital Markets); segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 283) | 229) | 223) | 269) | 206) |
| Depreciation and amortization, including purchase accounting amortization | 342) | 329) | 273) | 217) | 158) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.83 | 0.70 | 0.82 | 1.24 | 1.30 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization, including purchase accounting amortization
= 283 ÷ 342 = 0.83
- Capital Expenditures
- The capital expenditures for the segment showed a fluctuating trend over the period from 2018 to 2022. There was an increase from US$206 million in 2018 to US$269 million in 2019, followed by a decline to US$223 million in 2020. The expenditures then showed a slight increase in 2021 to US$229 million, and a more notable rise to US$283 million in 2022, the highest level within the five-year span.
- Depreciation and Amortization
- Depreciation and amortization expenses exhibited a consistent upward trend throughout the years analyzed. Starting at US$158 million in 2018, these expenses increased significantly each year, reaching US$217 million in 2019, US$273 million in 2020, US$329 million in 2021, and peaking at US$342 million in 2022. This steady rise indicates growing amortization of intangibles and other asset costs inherent to the segment over time.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation declined from 1.3 in 2018 to 1.24 in 2019, then dropped more substantially to 0.82 in 2020 and further to 0.7 in 2021. A slight recovery was observed in 2022 with the ratio increasing to 0.83. This decreasing trend over most of the period suggests that capital spending did not keep pace with the increasing depreciation and amortization charges, potentially indicating reduced investment intensity relative to asset expenses, before a modest improvement in the most recent year.
Revenue
Fidelity National Information Services Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Banking Solutions (Banking) | 6,706) | 6,396) | 5,944) | 5,873) | 5,712) |
| Merchant Solutions (Merchant) | 4,773) | 4,496) | 3,767) | 2,013) | 276) |
| Capital Market Solutions (Capital Markets) | 2,763) | 2,624) | 2,440) | 2,447) | 2,391) |
| Corporate and Other | 286) | 361) | 401) | —) | 44) |
| Total | 14,528) | 13,877) | 12,552) | 10,333) | 8,423) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The revenue data for the reportable segments reveal several noteworthy trends over the five-year period.
- Banking Solutions
- This segment has shown steady, consistent growth annually. Revenue increased from 5,712 million USD in 2018 to 6,706 million USD in 2022, reflecting a gradual upward trajectory without significant volatility. The growth rate appears moderate and stable, suggesting a mature and reliable revenue source within the company's portfolio.
- Merchant Solutions
- The Merchant Solutions segment demonstrates a pronounced and rapid expansion throughout the period. Starting from a relatively low base of 276 million USD in 2018, revenue surged dramatically to 4,773 million USD by 2022. Notable jumps occurred between 2018 and 2019, and again between 2019 and 2021, indicating strong market penetration and increasing demand in this segment. The continuous upward momentum highlights this as the fastest-growing segment.
- Capital Market Solutions
- This segment's revenue remained relatively stable with slight fluctuations. Beginning at 2,391 million USD in 2018, it experienced marginal growth overall to reach 2,763 million USD in 2022. Variations year-over-year are minimal, signifying a steady but slower growth profile compared to other segments.
- Corporate and Other
- The Corporate and Other category displays inconsistent data with some missing values, complicating trend analysis. Nonetheless, it experienced a substantial increase from 44 million USD in 2018 to 401 million USD in 2020, followed by a decline to 286 million USD in 2022. This variability may reflect less predictable or non-core revenue streams.
- Total Revenue
- Overall, total revenue has shown a strong and continuous upward trend, rising from 8,423 million USD in 2018 to 14,528 million USD in 2022. The data indicate a compound effect of the substantial growth in Merchant Solutions and steady increases in Banking and Capital Market Solutions segments, contributing to the company's expanding revenue base.
Depreciation and amortization, including purchase accounting amortization
Fidelity National Information Services Inc., depreciation and amortization, including purchase accounting amortization by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Banking Solutions (Banking) | 597) | 583) | 513) | 523) | 494) |
| Merchant Solutions (Merchant) | 360) | 346) | 305) | 118) | 10) |
| Capital Market Solutions (Capital Markets) | 342) | 329) | 273) | 217) | 158) |
| Corporate and Other | 2,547) | 2,757) | 2,623) | 1,586) | 758) |
| Total | 3,846) | 4,015) | 3,714) | 2,444) | 1,420) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The analysis of depreciation and amortization, along with purchase accounting amortization across the reportable segments, reveals several notable trends over the five-year period ending December 31, 2022.
- Banking Solutions (Banking)
- This segment shows a relatively stable and gradually increasing trend in depreciation and amortization expenses. Beginning at $494 million in 2018, the value rose to $597 million by 2022. There is a steady but moderate upward movement with no significant fluctuations, indicating consistent investment and amortization activity within this segment.
- Merchant Solutions (Merchant)
- The Merchant segment exhibits a marked and rapid increase over the analyzed period. Starting from a minimal $10 million in 2018, depreciation and amortization escalated sharply to $360 million by 2022. The most significant growth occurred between 2018 and 2020, reflecting potentially accelerated acquisitions or capital expenditures followed by continued elevated levels into subsequent years.
- Capital Market Solutions (Capital Markets)
- This segment also displays a clear upward trend in depreciation and amortization expenses. Values increased from $158 million in 2018 to $342 million in 2022. The growth appears steady, suggesting ongoing investment and amortization consistent with business expansion or intangible asset capitalization in this area.
- Corporate and Other
- This category shows the most pronounced rise initially, with values surging from $758 million in 2018 to a peak of $2,757 million in 2021. However, there is a slight decline to $2,547 million in 2022. This considerable increase, followed by a minor reduction, likely reflects significant purchase accounting amortization related to acquisitions, which reached a culmination in 2021 before stabilizing or reducing slightly in the following year.
- Total Depreciation and Amortization
- The aggregate depreciation and amortization expenses grew substantially from $1,420 million in 2018 to a peak of $4,015 million in 2021, followed by a slight decline to $3,846 million in 2022. This overall upward trajectory is driven primarily by increases in Corporate and Other, Merchant, and Capital Market Solutions segments. The minor decrease in the final year may indicate a stabilization of capital expenditures or completion of amortization schedules related to prior acquisitions.
In summary, the data suggest a strong strategic emphasis on growth and acquisition activities, particularly evident in the Merchant and Corporate and Other segments. The consistent rise in depreciation and amortization expenses indicates ongoing investment in fixed assets and intangible assets. The slight moderation in 2022 implies a potential shift toward optimization or the maturation of amortization related to previous capital investments.
Adjusted EBITDA
Fidelity National Information Services Inc., adjusted ebitda by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Banking Solutions (Banking) | 2,854) | 2,874) | 2,556) | 2,454) | 2,256) |
| Merchant Solutions (Merchant) | 2,258) | 2,262) | 1,752) | 994) | 59) |
| Capital Market Solutions (Capital Markets) | 1,375) | 1,271) | 1,147) | 1,129) | 1,081) |
| Corporate and Other | (292) | (290) | (195) | (373) | (263) |
| Total | 6,195) | 6,117) | 5,260) | 4,204) | 3,133) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The annual segment adjusted EBITDA data reveal distinct trends across the different business segments over the five-year period ending in 2022.
- Banking Solutions
- The EBITDA in the Banking segment shows a steady growth from 2018 to 2021, increasing from $2,256 million to $2,874 million. However, this growth slightly reversed in 2022, with a marginal decline to $2,854 million. Despite this small decrease, the overall trend across the period remains positive, indicating generally stable profitability in this segment.
- Merchant Solutions
- The Merchant segment exhibits significant growth throughout the period. Starting at $59 million in 2018, EBITDA surged dramatically to $994 million in 2019, followed by continued sizable increases to $1,752 million in 2020 and $2,262 million in 2021. The figure remained virtually flat in 2022, at $2,258 million. This trend underscores rapid expansion and substantial improvement in profitability, particularly from 2018 through 2021, stabilizing thereafter.
- Capital Market Solutions
- The Capital Markets segment presents a consistent upward trajectory in EBITDA, with incremental increases year over year. The EBITDA rose from $1,081 million in 2018 to $1,375 million in 2022, indicating progressive growth at a moderate pace and steady enhancement of operational performance in this area.
- Corporate and Other
- The Corporate and Other category consistently reflects negative EBITDA values, ranging from -$263 million in 2018 to a low of -$373 million in 2019, before improving somewhat but remaining negative through 2022, ending at -$292 million. This persistent negative contribution suggests ongoing costs or losses that offset segment profits to some extent.
- Total Adjusted EBITDA
- The total adjusted EBITDA illustrates substantial aggregate growth across the entire company. Starting at $3,133 million in 2018, total EBITDA climbed sharply each year, reaching $6,195 million in 2022. The rapid increase is largely driven by the Merchant segment’s expansion along with steady contributions from Banking and Capital Markets, despite the drag from the negative Corporate and Other segment.
Capital expenditures
Fidelity National Information Services Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Banking Solutions (Banking) | 494) | 442) | 498) | 617) | 485) |
| Merchant Solutions (Merchant) | 514) | 401) | 365) | 144) | 11) |
| Capital Market Solutions (Capital Markets) | 283) | 229) | 223) | 269) | 206) |
| Corporate and Other | 162) | 214) | 64) | 13) | 11) |
| Total | 1,453) | 1,286) | 1,150) | 1,043) | 713) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Banking Solutions Capital Expenditures
- The expenditures fluctuated over the five-year period, starting at $485 million in 2018, peaking at $617 million in 2019, then declining to $498 million in 2020 and further to $442 million in 2021. An increase to $494 million is observed in 2022, indicating some recovery after the downward trend in the previous two years.
- Merchant Solutions Capital Expenditures
- There was a significant upward trend in merchant solutions expenditures, rising sharply from $11 million in 2018 to $144 million in 2019. This growth continued in subsequent years with expenditures increasing to $365 million in 2020, $401 million in 2021, and reaching $514 million in 2022. The data suggests strong and consistent investment growth in this segment throughout the period.
- Capital Market Solutions Capital Expenditures
- Expenditures in the capital markets segment showed moderate variation. The amount increased from $206 million in 2018 to $269 million in 2019, then decreased to $223 million in 2020. Slight increases followed with $229 million in 2021 and $283 million in 2022. Overall, this segment experienced some volatility but showed an upward trend toward the end of the period.
- Corporate and Other Capital Expenditures
- This category exhibited a marked increase from relatively low levels of $11 million in 2018 and $13 million in 2019 to $64 million in 2020. A substantial jump to $214 million occurred in 2021, followed by a decline to $162 million in 2022. The significant rise and subsequent decline indicate potentially irregular or one-time capital investments in these years.
- Total Capital Expenditures
- Total capital expenditures increased steadily over the entire period, rising from $713 million in 2018 to $1,043 million in 2019, $1,150 million in 2020, $1,286 million in 2021, and reaching $1,453 million in 2022. This continuous growth reflects overall increased investment activity across all segments, driven primarily by rises in merchant solutions and corporate and other categories.