Global Payments Inc.

This is our first report on Global Payments Inc., a financial technology company providing payment solutions and services in the U.S. The company managed an all-around beat in its last result with a strong performance in Global Payments despite the increased global macroeconomic uncertainties. Merchant business produced 9% adjusted net revenue growth for the fourth quarter, excluding dispositions. The company’s Issuer segment saw an increase in adjusted net revenue of 5% on a currency-neutral basis. The most significant development was that their core Issuer business once more produced sequential financial and operational improvement, in line with their expectations and the strongest results since their merger with TSYS in 2019. QSR and School Solutions businesses were significant standouts with low double-digit growth. In the fourth quarter, transactions for the commercial card business increased by 20% as local and international corporate travel maintained its upward trend. Furthermore, they carried out the acquisition of EVO Payments. With EVO, they strengthened their position as a major provider of payments technology with broad reach around the globe. Global Payments also signed an agreement to sell their gaming business to Parthenon Capital Partners for $415 million. The management anticipates having steady growth in 2023. We initiate coverage on the stock of Global Payments, Inc. with a ‘Buy’ rating.