Global Payments Inc. (NYSE:GPN) Q2 2015 Earnings Conference Call - Final Transcript
Jan 08, 2015 • 08:00 am ET
Ladies and gentlemen, thank you for standing by. And welcome to Global Payments' Fiscal 2015 Second Quarter Conference Call. (Operator Instructions) And as a reminder, today's conference will be recorded.At this time, I would like to turn the conference over to your host, the Executive Vice President and Chief of Staff, Jane Elliott. Please go ahead.
Jane Marie Elliott
Thank you. Good morning, and welcome to Global Payments Fiscal 2015 second quarter conference call. Our call today is scheduled for 1 hour. And joining me on the call are Jeff Sloan, CEO; David Mangum, President and COO; and Cameron Bready, Executive Vice President and CFO.
Now, I'd like to introduce Jeff Sloan. Jeff?
Jeffrey S. Sloan
Thank you Jane, and thanks, everyone, for joining us this morning. We are delighted to deliver another quarter of strong performance and to again raise our fiscal 2015 revenue, margin, and cash earnings per share guidance.By remaining intensely focused on execution, we achieved revenue growth for our fiscal second quarter of 10%, cash earnings per share growth of 19%, and operating margin expansion of 100 basis points.Our performance for this quarter resulted in the largest core operating margin expansion of any quarter over the past several years.
Additionally, this is the first time in our history that we have achieved an annual free cash flow run rate of over $400 million.These milestones are driven by the strong momentum we have achieved worldwide across our direct distribution businesses, and are particular noteworthy given significant foreign currency headwinds.
Consistent with recent trends, our US business delivered impressive results led by our direct channels, which generated double-digit organic revenue growth for the second consecutive quarter. Canada also maintained stable performance in local currency with consistent business fundamentals.Our international results reflect solid business performance across most of our markets, with particularly strong revenue growth in Asia, Spain, and our eCommerce channel.
Additionally, we experienced markedly better than expected margins in our international business, largely from outstanding execution, augmented by market based pricing changes in Spain.We also continued to make progress on our strategic goal to expand our worldwide footprint. During our fiscal second quarter, we completed the acquisition of Ezidebit, which provides us with distinctive distribution in Australia and New Zealand, new direct markets for Global Payments.
We also recently announced an agreement to establish a merchant acquiring joint venture with Bank of the Philippine Islands, one of the country's largest banks. With this new partnership we will increase our existing distribution in the highly attractive Philippines market, and bring our innovative products and services to a significant additional merchant base.These transactions will enhance our position in some of the fastest growing payment's markets in Asia Pacific and demonstrate that we are making significant progress on our strategy in that region, executing on our vision that we set forth in 2012 with the purchase of HSBC's remaining interest in our then Asia Pacific joint venture.
Our performance in the first half of fiscal 2015 reflects the consistent and sound execution of our strategy