US payment processor Global Payments has delivered a robust set
of results in its second quarter ending 30 November 2008.
Despite the impact of a stronger dollar, Global reported a 30
percent increase in revenue compared with the second quarter of
2007 to $401 million and a 25 percent increase in earnings per
share. On a constant currency basis, revenues grew 37 percent.
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Results in the quarter included the benefit of the acquisition
of a 51 percent stake in UK bank HSBC’s merchant acquiring business
on 30 June 2008 for $439 million. Now named HSBC Merchant Services,
the joint venture serves 135,000 outlets and has a 15 percent share
of the UK card processing market.
However, Global chairman and CEO Paul Garcia stressed strong
results from the company’s North America segment had also played a
key role in the quarterly performance.
“North America continues to benefit from successful pricing
initiatives in Canada as well as a solid 16 percent transaction
growth in the US,” said Garcia.
For its full 2008-09 fiscal year, Global forecasts total revenue
of between $1.55 billion and $1.58 billion, or an increase of
between 22 percent and 24 percent compared with fiscal 2007-08.
This forecast, noted Global, excludes any impact of the acquisition
of Russian merchant acquirer and payments processor ZAO United Card
Service (UCS) announced in September 2008.
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By GlobalDataUCS, for which Global agreed to pay $120 million in cash,
reported total revenue of $34.2 million in 2007.
