First Data Corporation (FDC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $192 million, or $ 0.21 a share in the quarter, against a net loss of $1,217 million, or $7.70 a share in the last year period. On an adjusted basis, net profit for the quarter was $365 million, when compared with $271 million in the last year period. Revenue during the quarter went down marginally by 0.71 percent to $2,943 million from $2,964 million in the previous year period. Gross margin for the quarter expanded 342 basis points over the previous year period to 40.50 percent. Total expenses were 83.69 percent of quarterly revenues, down from 96.66 percent for the same period last year. This has led to an improvement of 1297 basis points in operating margin to 16.31 percent.
Operating income for the quarter was $480 million, compared with $99 million in the previous year period.
“First Data delivered a full-year profit, generating a nearly $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.
Operating cash flow improves significantly
First Data Corporation has generated cash of $2,111 million from operating activities during the year, up 165.53 percent or $1,316 million, when compared with the last year. The company has spent $387 million cash to meet investing activities during the year as against cash outgo of $685 million in the last year.
The company has spent $1,734 million cash to carry out financing activities during the year as against cash outgo of $16 million in the last year period.
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