First Data Reports Second Quarter Results

Thursday 22 July 2004 20:36 CET | News

First Data has reported second quarter earnings per share (EPS) from continuing operations of $0.53, up 15% from the prior-year second quarter. Revenue for the quarter increased 22% to $2.5 billion. Net income from continuing operations was $464 million.

Operating expenses in the quarter included integration expenses that impacted EPS by $0.02 and other charges that had a $0.01 impact. Second Quarter Highlights - Concord integration activities are on plan to achieve approximately $30 million in cost savings for 2004. - During the quarter, the company announced the sale of NYCE, which is expected to close in the third quarter. - On June 10, First Data announced an agreement to acquire payments processor, Delta Singular Outsourcing Services S.A. - In the second quarter, certain prior-period tax matters were favorably resolved benefiting EPS by $0.03 and lowering the 2004 projected tax rate to 27%. - The company repurchased 15.5 million shares of stock for $683 million at an average price of $44.08 per share. The remaining authorization for stock repurchases is $1.7 billion. Payment Services delivered $1.0 billion in quarterly revenues, a 14% growth over prior year. This marks the first time in company history the segment crossed the $1 billion threshold in a single quarter. Operating profits increased 12% to $341 million, and margins were 34%. Western Union, representing more than 80% of Payment Services revenue, delivered strong results. Consumer-to-consumer transaction growth continued strong at 20%. International transaction growth of 24% drove 21% revenue growth. Transactions to Mexico increased 16%. Prepaid and consumer-to-business transactions grew 20% and 9%, respectively. The Western Union global agent network has surpassed 195,000 locations. In July, Western Union purchased a 30% equity interest in one of its agents in Italy, Angelo Costa, S.p.A., with a network of nearly 3,000 locations throughout the country. During the quarter, Western Union signed an agreement with the Italian Automobile Club with 800 locations and activated more than 1,300 Czech Post locations. Merchant Services second quarter revenue was up 46% from the same period last year to $997 million, and operating profits increased 23% to $239 million, and margins were strong at 24%. Merchant transactions grew 71% for the quarter. Card Issuing Services posted second quarter revenue of $598 million, a 15% year-over-year increase and operating profits of $135 million, an 82% increase. During the quarter, 20 million accounts were converted on schedule for six different clients. An additional 20 million accounts are scheduled to be converted in the third and fourth quarters, and, after taking into consideration anticipated deconversions, accounts on file at year-end will be approximately 390 million.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce