First Data has filed a registration statement for a proposed initial public offering (IPO) with an estimated value of $40 billion. KKR took the payments processor private in 2007 for $26 billion.
The mega processor handles more than 2,300 transactions per second and $1.9 trillion per year. First Data serves approximately six million business locations and 4,000 financial institutions in 118 countries around the world
According the Wall Street Journal under Chief Executive Frank Bisignano, a former top Chase executive, who took the helm in 2013, First Data posted its first quarterly profit in more than seven years in February. It was a milestone that the company had said might set the stage for a public offering.
First Data reported its Merchant Solutions segment revenue for Q1/15 was $888 million, up 4% year-on-year (YOY), adversely impacted by 1% due to the sale of Electronic Funds Source (EFS). Merchant acquiring revenue increased 6% YOY due to transaction growth and revenue from the Company’s merchant suite of solutions.
Merchant Solutions segment EBITDA was $368 million, roughly flat versus the prior year period, primarily due to investments in distribution and innovation and adversely impacted by $6 million due to the EFS sale.
Financial Services segment revenue for the first quarter was $372 million, up 7% YOY, driven by the continued benefit from new business wins, growth in existing portfolios and network revenue. Segment EBITDA was $180 million, up 4% versus the prior year period.
International segment revenue for Q1/15 was $398 million, down 5% versus the prior year period. On a constant currency basis, revenue was up 7% versus the prior year period. On a constant currency basis, merchant acquiring revenue was up 11% due to volume growth and issuing revenue was up 3%. Segment EBITDA was $97 million, down 24% versus the prior year period and down 16% on a constant currency basis due to increased investments, most notably in Brazil.
MERCHANT SOLUTIONS REVENUES
1Q/14: $856 million
2Q/14: $945 million
3Q/14: $920 million
4Q/14: $947 million
1Q/15: $888 million
Source: First Data; CardData
For data, background and forecasts on First Data: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).