Fidelity National Information Services Inc. — the developer of software used to process about 50 percent of all U.S. residential mortgages — said profits were up in 2006 thanks to growth in international business and demand for its default solutions and appraisal products.
FIS reported fourth-quarter earnings in 2006 grew to $75.1 million, up 65 percent from the same quarter a year before. Profits for the year totaled $259.1 million, up 32 percent from $196.5 million in 2005.
FIS’ transaction processing services generated fourth-quarter revenue of $694.7 million, a 16.1 percent increase from the same quarter in 2005. The increase was driven in part by a 55 percent growth in revenue from international business, to $141 million.
Fourth-quarter revenue from lender processing services increased 7.9 percent to $437.1 million, despite a 1.6 percent decline in revenue from mortgage processing, to $92.5 million. Revenue from lender processing services benefited from 10.6 percent growth in information outsourcing, to $344.7 million.
FIS expects revenue growth of 7 percent to 9 percent in 2007, and earnings per share of $1.97 to $2.03, compared with $1.52 in 2006. That guidance excludes remaining costs associated with the merger of FIS and credit and debit processor Certegy Inc., the company said.
This year will be the first full year for FIS as a publicly traded company independent of its former holding company, Fidelity National Financial. Under a 2006 reorganization, FIS’ sister company Fidelity National Title assumed the name and stock market ticker symbol of Fidelity National Financial (FNF).
FNF, which is absorbing costs of the restructuring, reported Tuesday that 2006 profits fell 55 percent to $437.8 million.
