FIS banking and payments technology posted a 2.8% increase in revenue for the quarter ended September 30, 2012. On an organic basis, revenue increased 5.0%, excluding the impact of acquisitions and foreign currency, continuing the trend of organic growth approaching 5.0% or better in seven of the last eight quarters. Organic revenue growth, which adjusts…
Chase is discontinuing the servicing of Washington Mutual Bankâs consumer card portfolio by TSYS. Chase acquired WaMuâs portfolio in September as part of its purchase and assumption agreement with the FDIC regarding the assets and liabilities of WaMu. However, TSYS and Chase have agreed to an extension of the processing agreement for the Canadian card business through April 2012. Chase will pay TSYS fees for the WaMu deconversion and termination. The deconversion is expected to
take place in March after which Chase will process the WaMu portfolio in house on the technology platform it licenses from TSYS. WaMu accounts for less than 4% of TSYSâ revenues.
TSYS reported second quarter revenues of $483.1 million, an increase of
5.0% year-on-year. However, net income for the quarter deceased 4% to
$63.1 million. Electronic payment processing services revenue for the
quarter slipped by 1% to $242.4 million and merchant acquiring services
revenue rose 2%. Sequentially, merchant acquiring services revenues
increased 6.3%. Other services revenue for the second quarter was $64.4
million, an increase of 16.9% over 2Q/07. For the second quarter total
revenues for the Global Services
segment were $79.6 million, an increase of 31.9% for the same period
last year. Year-to-date total revenues for the Global Services segment
were $149.0 million, an increase of 28.9%, compared to $115.5 million
for the same period last year. During the quarter TSYS renewed a
long-term agreement with Target to service its “REDcard” portfolio;
renewed a multi-year agreement with Canadian Tire Financial
Services to exclusively process its payment cards programs; signed a
payments processing agreement with Mexico’s Globalcard for the launch of
its consumer credit card portfolio; and announced an agreement with
PartnersFirst Affinity Services to process its consumer credit card
portfolio. For complete details on TSYS’s second quarter performance
visit CardData ([www.carddata.com](http://www.carddata.com)).
First Data reported a fourth quarter loss from continuing operations of $273 million but included $499 million of merger related costs. For the quarter, Commercial Services reported revenue of $1.2 billion, up 7% or 10% excluding purchase accounting adjustments. Excluding reimbursable debit network fees and purchase accounting adjustments, revenue growth was 5%. Financial Institution Services revenue was $504 million, up 4% or flat excluding reimbursables and purchase accounting adjustments. Operating profit was $62 million, down 36% or down 2% excluding purchase accounting adjustments. First Data International generated revenue of $479 million was up 27%. For complete details on First Data’s latest results visit CardData ([www.carddata.com][1])
FDC CARD SERVICES HISTORICAL
4Q/06: $453.9 million
1Q/07: $443.6 million
2Q/07: $458.7 million
3Q/07: $473.2 million
4Q/07: $498.6 million
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com
TSYS reported that third quarter profits rose 27%, hitting $68.8 million. Revenues of $457.6 million represented a 4% rise over 3Q/06. The Company says revenue growth continues to pick up steam with international revenues growing 38% year-to-date over 2006. During the third quarter TSYS signed an issuer processor agreement with Discover Financial Services; signed a long-term agreement with the U.K.’s Nationwide to process its credit card account portfolio and to build, operate and manage a new customer care center for member support services; signed Tinkoff Credit Systems, a Moscow-based consumer lending bank, to supply its card management and authorization system; launched a new money transfer card in the UK with Lloyds TSB; and announced a multi-year agreement to provide merchant processing services to Veracity Payment Solutions headquartered in Atlanta. Based on GAAP, TSYS’ estimates 2007 net income to increase between 0%-2% as compared to 2006. For complete details on TSYS third quarter performance, visit CardData ([www.carddata.com][1]).
TSYS REVENUE HISTORICAL
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
2Q/06: $429.2 million
3Q/06: $441.8 million
4Q/06: $503.9 million
1Q/07: $429.6 million
2Q/07: $460.2 million
3Q/07: $457.6 million
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com
TSYS reported that second quarter profits rose 14%, hitting $65.7 million. Revenues of $460 million represented a 14% rise over 2Q/06. The Company says internal revenue growth in its core processing business continues to be the strong driver of its domestic results and that its international growth is driven by acquisitions and strong demand. During the second quarter TSYS renewed merchant acquiring service agreements with Merchant Management Systems, as well as signed new agreements with mPay Gateway and The Bancorp Bank; completed the pilot program for the “Wal-Mart MoneyCard”; introduced “Chip and PIN Secure Payments” in Cyprus; launched the “Rewards” card pilot program in the United Kingdom with Norwich Union; and that CUP Data, TSYS’ joint venture with China UnionPay, has recently begun providing processing services for Huaxia Bank. Excluding the one time BofA contract termination fee last year of $68.9 million and the acceleration of amortization of BofA contract acquisition costs of approximately $6 million, net income is expected to increase between 20%–22% in 2007 compared to 2006. Based on GAAP, TSYS’ estimated 2007 net income is expected to increase between 0%–2% as compared to 2006. For complete details on TSYS second quarter performance, visit CardData ([www.carddata.com][1]).
TSYS REVENUE HISTORICAL
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
2Q/06: $429.2 million
3Q/06: $441.8 million
4Q/06: $503.9 million
1Q/07: $429.6 million
2Q/07: $460.2 million
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com
TSYS reported that third quarter profits rose 13%, hitting $54.3 million. Revenues topped $441 million, a 4.7% rise over 3Q/05. As a result, TSYS is now projecting 2006 earnings growth in the range of 26% to 28%, compared to previous guidance of 21% to 23%. Accounts on file increased to 400 million as of September 30th, including 334.8 million domestic accounts and 65.2 million international accounts. Recently, TSYS converted more than 42 million Capital One accounts onto its “TS2” platform. The Company also converted approximately 6 million accounts for The Toronto-Dominion Bank. Internationally, Toyota Finance Corporation was announced as TSYS first processing relationship in Japan. TSYS additionally announced a new relationship in Japan with United Cinemas Co. to process its new “Cinema Gift Card,” a prepaid product. Also in the Asia-Pacific region, TSYS increased its equity interest in China UnionPay Data Services to 44.56%. For complete details on TSYS third quarter performance, visit CardData ([www.carddata.com][1]).
TSYS REVENUE HISTORICAL
3Q/04: $305.0 million
4Q/04: $307.2 million
1Q/05: $350.0 million
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
2Q/06: $429.2 million
3Q/06: $441.8 million
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com
TSYS reported that second quarter profits rose 13% year-on-year to $57.4 million. Revenues for the quarter increased 5% to $429.2 million, compared to 2Q/05. Accounts on file increased to 366.5 million as of June 30th, down 5% from one-year ago. TSYS also reports that stored value accounts rose 31% to 29.3 million. Total consumer accounts on file at the end of the second quarter rose 5% to 241.2 million. TSYS recently reached a long-term agreement with Wachovia to provide core-processing and other related services in support of their re-entry into the consumer credit-card line of business. The processor also reached agreements through TSYS Acquiring Solutions with Delta Payment Solutions and New England Bankcard Association to provide merchant processing services. Additionally, TSYS renewed a long term relationship through TSYS Acquiring Solutions with Heartland Payment Systems. TSYS says it expects total revenues for 2006 to increase between 6% and 8%. Also, that accounts on file at the end of the year will be approximately 395 million to 405 million. For complete details on TSYS second quarter performance, visit CardData ([www.carddata.com][1]).
TSYS REVENUE HISTORICAL
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
2Q/06: $429.2 million
Source: CardData (www.carddata.com
[1]: http://www.carddata.com
TSYS reported that first quarter profits rose 9% year-on-year to $50.4 million. Revenues for the quarter increased 18% to $412.3 million, compared to 1Q/05. Accounts on file increased to 440.4 million as of March 31st, up 19% from one-year ago. TSYS also reports that stored value accounts rose 18% to 14.9 million. Total consumer accounts on file at the end of the first quarter rose 28% to 272.5 million. During the first quarter, TSYS renewed its multi-year agreement to provide CompuCredit with processing and related services. TSYS says it expects total revenues for 2006 to increase between 6% and 8%. Also, that accounts on file at the end of the year will be approximately 395 million to 405 million. For complete details on TSYS first quarter performance, visit CardData ([www.carddata.com][1]).
TSYS REVENUE HISTORICAL
1Q/05: $350.0 million
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com
TSYS reported that fourth quarter profits rose 16% year-on-year to nearly $50 million but $1.3 million below the third quarter. Revenues for the fourth quarter increased 37% to $420.7 million, compared to 4Q/04. Accounts on file increased to 437.9 million as of December 31st, up 22% from one-year ago. TSYS also reports that stored value accounts rose 20% to 14.3 million. During the fourth quarter, TSYS expanded its global reach into China with a 34% equity interest in China UnionPay Data; extended processing relationships with Allied Irish Banks of Dublin, Ireland and Metavante of Milwaukee; executed a long-term agreement with Toronto-Dominion Bank to provide a range of processing and support services for its consumer and commercial credit-card accounts and established TSYS Managed Services by integrating contact centers and customer-servicing operations of several subsidiary companies into a single special business unit. For complete details on TSYS fourth quarter performance, visit CardData ([www.carddata.com][1]).
TSYS REVENUE HISTORICAL
4Q/04: $307.2 million
1Q/05: $350.0 million
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com
Bank of America, pending its acquisition of MBNA, has notified TSYS of its intent to bring the processing of its consumer card portfolio in-house next October. The BofA decision will reduce TSYS annual revenues by approximately 14.9%. However, TSYS expects to continue providing commercial and small business card processing for BofA and MBNA as well as merchant processing for BofA. BofA will pay a termination fee related to the deconversion of the consumer portfolio. TSYS says all relationships with BofA and MBNA are expected to generate a combined total of $376.9 million in revenues for 2005, or 23.5% of total revenues. TSYS projects an annualized loss of approximately $239 million in revenues upon deconversion of the consumer card portfolio that BofA plans to move in-house.
After a 15-month evaluation process, Citigroup has decided to move the processing of its Sears consumer MasterCard and private-label accounts from TSYS to First Data. The deconversion is expected to be completed by the second quarter of 2006. The signing of the long-term processing agreement with Citi is a major victory for First Data. In October, TSYS finalized an agreement with JPMorgan Chase to service the combined card portfolios of Chase and Bank One. First Data formerly processed for Chase. In August, Bank of America decided to move its credit card processing for the FleetBoston card portfolio from First Data to TSYS. TSYS said it expects to continue supporting commercial-card accounts for Citibank and Sears as well as Citibank’s California Commerce consumer accounts, according to the terms of the existing agreements for those portfolios. (CF Library 8/19/04; 10/14/04)