Portfolio Recovery Q2 Profits Rise 17%

VA-based Portfolio Recovery Associates reported that second quarter net income grew 17% over 2Q/06 to $13.0 million. Total revenue in the second quarter increased 19% to $54.8 million. The Company purchased $2.5 billion of face-value debt during the second quarter for $63.4 million, the second-largest amount the Company has spent on debt acquisitions in a single quarter. The debt was acquired in 58 pools from 27 different sellers. Cash collections rose 9% to $64.6 million in the second quarter. The Company’s fee-for-service businesses generated revenue of $8.4 million in the second quarter, up 45% over 2Q/06. The Company also announced the appointment of Kent McCammon to the new position of Senior Vice President, Strategy and Business Development. For complete details on Portfolio Recovery Associates’ second quarter performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

VISA Launches VidayDinero.com for Hispanics

VISA USA and the U.S. Hispanic Chamber of Commerce have launched a free, comprehensive Spanish-language personal finance website called “VidayDinero.com”The lessons and financial education resources found on VidayDinero.com have been developed using Visa’s free, award-winning online financial education program, /Practical Money Skills for Life/. Available in English, Spanish and Chinese, /Practical Money Skills for Life/ contains an array of tips to help prepare for life changing financial events, from planning a baby to saving for college and retirement, as well as a number of budget calculators and interactive games.The USHCC implements and strengthens national programs that assist the economic development of Hispanic business and works to promote financial success in the Hispanic community.

Citi & Obopay to Offer a M-Payment Service

Citi will begin piloting a new mobile peer to peer payment service with CA-based mobile payments provider Obopay. Select Citi customers participating in the trial can add money to their mobile payment account via http://www.citi.obopay.com through credit card or electronic bank transfer. Then, using the Obopay mobile application, their mobile Web browser or text messaging, Citi customers can manage their mobile payment account directly from their mobile phone. Citi trial participants will be able to check balances, view payment histories, and add funds to their mobile payment account. Funds received via the mobile payment service can also be accessed with a prepaid debit card to be provided with the service. The mobile payment service will be initially offered to select new and existing Citi customers as part of a limited consumer trial in Boston and Chicago.

American Banknote Joins GlobalPlatform

American Banknote is the newest organization to join as a member of smart card specification body, GlobalPlatform, and the association’s fifth new member since January 2007. A global supplier of secure documents, services and systems, American Banknote joins GlobalPlatform to support the development and promotion of the organization’s open smart card infrastructure, which it will utilize to enhance the deployment of smart card technology throughout the ABnote Group operating companies (Leigh Mardon, ABnote Brazil, Transtex, CPS Technologies, Arthur Blank, American Bank Note Company and Presscard).As a Participating Member of GlobalPlatform, American Banknote representatives will take an active role in the organization’s Systems Committee, helping to evolve the Committee’s technical roadmap and drive the continued, world-wide adoption of GlobalPlatform systems technology. The Systems Committee designs infrastructures for single and multi-application smart card programs and develops associated requirements, specifications and guidelines.American Banknote Corporation is a global supplier of secure documents, services and systems.

Coinstar Money Transfer Service Expands

Self-service coin counting specialist Coinstar has inked an agreement to acquire GroupEx Financial Corporation in a deal valued at approximately $50 to 60 million. GFC provides electronic money transfer services between the U.S. and Latin America, and currently operates a network with approximately 1,650 send agents in 23 states servicing 13 countries. GFC has achieved a 240% CAGR in electronic transfers from 2004 through 2006. Following the deal the Coinstar Money Transfer service will be offered at more than 31,000 agent locations in 143 countries. The purchase includes a $60 million cash payment upon closing, at which time Coinstar will receive the cash on GroupEx’s balance sheet, which is expected to be approximately $12 million. In addition, there is a contingent payment of up to $10 million within 15 months of closing if certain performance hurdles are met. This is expected to produce a net purchase price of between $48 million to $58 million before cost savings or synergies; however, the exact net amount will not be known until closing. Coinstar products and services can be found at more than 60,000 retail locations.

Fair Isaac Posts a Flat Revenue Quarter

Credit scoring king Fair Isaac reported that second calendar quarter revenues declined slightly to $205.8 million, compared to the prior year period. Net income declined more than 8% year-on-year to $23.8 million. Scoring Solutions revenues increased 8% to $47.2 million in the quarter, primarily due to an increase in revenues from risk scoring services at the credit reporting agencies and the “FICO Expansion” score. Professional Services revenues declined 4% to $35.3 million in the quarter due to a decline associated with industry consulting, fraud, and collections and recovery implementation services, offset by an increase in revenues derived from customer management implementation services. Strategy Machine Solutions revenues dipped 1.4% to $113.2 million due to the divestiture of the mortgage product line last quarter and a decline associated with customer management and originations products. Analytic Software Tools revenues decreased 14.8% to $10.1 million in the quarter due to an decrease in revenues generated from sales of the “Model Builder” and “Blaze Advisor” products. The Company expects revenues for third calendar quarter to be approximately $200 million. For complete details on Fair Isaac’s latest results, visit CardData ([www.carddata.com][1]).

2Q/06: $207.1 million
3Q/06: $207.3 million
4Q/06: $208.2 million
1Q/07: $201.0 million
2Q/07: $205.8 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Authorize.Net Q2 Revenues Soar by 24%

MA-based Authorize.Net reports that revenue from continuing operations for the second quarter rose 24% to a record $17.2 million. Income from continuing operations was $2.0 million versus $457,000 for 2Q/06. Gross merchant adds in the second quarter were 20,740 with net merchant adds at a record 10,196, up 18% and 27%, respectively, compared to the same period in 2006. Active merchants as of June 30th were at a record 185,635, up 24% over the prior year. The Company processed $9.4 billion of merchant transactions in the second quarter, up 27% compared to the same period in 2006. Also, it processed 90.6 million transactions in the second quarter, a 24% increase over 2Q/06. On June 18th, Authorize.Net signed a definitive agreement to merge with CyberSource. For complete details on Authorize.Net’s latest results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com


Smart card specialist Gemalto reports that second quarter revenue rose 6% to $545 million as it completed its first year as a combination of Gemplus and Axalto. However, revenues for smart payment cards was flat at $133 million compared to 2Q/07. But, deliveries of smart cards and modules were up by 10%, driven by on-going EMV4 deployment and card renewal programs, primarily in Europe. Revenue derived from related personalization services also increased. However, price pressure in certain EMV markets offset those gains. Gemalto’s POS terminal second quarter revenues soared by 34% to $20 million. The growth in this segment was supported by the introduction of a new range of products developed on a common, highly adaptable new technology platform. During the quarter, the health insurance company Allgemeine Ortskrankenkasse awarded Gemalto with a large contract to supply and personalize 35 million electronic healthcards for German citizens. The Company also delivered the first electronic driver licenses in Mexico from the 900,000 unit order received earlier in the quarter. For complete details on Gemalto’s latest performance visit CardData (www.carddata.com).

Two CUs Select Pemco Technologies

University of Nebraska Federal Credit Union have selected Pemco Technologies for Visa credit and debit processing and TruService Community Federal Credit Union has selected Pemco for Visa credit/debit card processing and awards program services. The University of Nebraska FCU has assets of $54.6 million and close to 10,000 members. TruService Community FCU holds assets of $41.4 million and more than 6,000 members. Pemco Technologies provides innovative payment solutions to the financial industry including credit signature processing, debit signature processing, PIN-based processing, ATM acquiring and switching, cardholder award programs, fraud management/ detection/prevention, and gift card programs.


For June 2006, credit card borrowing fell by .1 billion GBP in the UK.
This is a reflection of weakening retail sales and is part of a trend of
unsecured card spending over the past two years. The total credit card
spending was GBP 6,983,000 for the month, a 4% decline since last
year, and a net lending decrease of 73million GBP.

Full Story
June’s gross mortgage lending of GBP21.5bn, the highest figure ever, was a
reflection of strong re-mortgaging activity. This was, however, only 5%
higher than a year earlier, suggesting that in real terms, lending
growth is slackening.

Pershing Square Wants Ceridian Board Out

Hedge fund Pershing Square is continuing its proxy battle to derail Ceridian’s proposed sale to Fidelity National Financial and private equity firm Thomas H. Lee. Pershing wants to unseat the entire board of Ceridian. Pershing Square says the deal is way undervalued and the Company is mismanaged. Ceridian yesterday responded saying Pershing Square has failed to date to present any economic proposal for the Company and its stockholders. Ceridian says Pershing Square has resorted to personal attacks. The Board recommended that Ceridian stockholders approve the pending merger and receive $36 per share in cash and vote for the Company’s slate of directors who will work to close the transaction as quickly as the agreement permits. Pershing Square owns about 15% of Ceridian.