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.
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.
UCS, for which Global agreed to pay $120 million in cash,
reported total revenue of $34.2 million in 2007.