Evertec reports $510.6M in Fiscal ’20 revenue; $134.2M in 4Q20
San Juan-based Evertec disclosed its financial results for the fourth quarter and full year ended Dec. 31 2020, reporting a 6% quarter-over-quarter revenue increase to $134.2 million and 5% revenue growth of 5% to $510.6 million year-over-year.
For the fourth quarter, the firm stated that GAAP net income attributable to common shareholders was $32.3 million, or $0.44 per diluted share, while adjusted EBITDA increased 16% to $63.9 million
For the full year 2020, Evertec’s net income attributable to common shareholders was $104.4 million, or $1.43 per diluted share, while adjusted EBITDA increased 6% to $240.5 million. The company returned $21.7 million to shareholders through share repurchases and dividends, said Evertec CEO Mac Schuessler.
“Despite the pandemic, we achieved record results for 2020 and delivered on significant key product implementations in Latin America for Santander Chile, Citibanamex and more recently with Mercado Libre in Mexico. We also benefited from increases in our ATH Movil and ATH Movil Business as consumers embraced a transition to digital transactions,” he said.
“Looking to 2021, we expect trends with consumers, merchants and banks to drive further digitized commerce. These industry tailwinds combined with our continued focus on innovation and market expansion in Latin America, will fuel our growth both this year and beyond,” he added.
As for the remainder of the year, Evertec is predicting it will achieve total consolidated revenue of between $533 million and $544 million representing growth of 4% to 7%, while capital expenditures are anticipated to be approximately $50 million.
In a call with analysts, Schuessler anticipated that Evertec will benefit from the recent consolidation in the banking industry in Puerto Rico, specifically the integration of FirstBank and Santander.
“We expect this will positively impact our 2021 merchant segment growth rates. We also believe we will continue to benefit from the current trends of digital transactions as we localize ‘PlacetoPay’ and focus on ATH Movil product features,” he said.
“We made further progress throughout the fourth quarter implementing QR codes for contactless payments, which are now available in more than 10% of our merchants. This continues to strengthen our ATH brand and drives consumers to embrace digital transactions, which escalated during the pandemic,” Schuessler said.
He also revealed that during the first half of this year, it plans to launch a new mobile app for electronic benefit transfers for EBT users that provides access to their balances on their EBT cards and notification of their next deposit.
“This new mobile app will further complement our EBT services to the government and responds to the needs of the consumer,” he said.
Evertec will also continue working closely with its main banking partner, Banco Popular, with which it has an agreement in place through Sept. 30, 2025. Schuessler said that relationship involves developing new technologies and being on the lookout for where it can invest.