First Data Posts 4Q/10 Flat Q/Q, FY Revenue

First Data posted its 4Q/10 consolidated revenue of $2.7 billion, up 6% compared to a year ago, thanks mostly to increases in debit network fees and merchant related services from U.S. economic growth. Meanwhile, the net loss attributable to First Data was $179 million, an improvement of $189 million and retail and alliance services revenue was up 7% to $873 million since the year ago period thanks to a transaction growth of 9%. The International segment revenue was $440 million, down 3% compared to the prior year. For the full year 2010, consolidated revenue was up 11% to $10.4 billion thanks in large part to Bank of America Merchant Services alliance and increases in debit network fees; adjusted revenue increased 3% to $6.4 billion thanks to revenue growth in Retail and Alliance Services, which was up 8% to $3.3 billion. This growth was driven by 10% transaction growth while Financial Services segment revenue for the year hit $1.4 billion, down 2% compared to 2009.

BAMS Alliance Drives FDC’s Q3 Revenue Up

First Data posted a 13% gain in consolidated third quarter revenue of
$2.44 billion, driven by the new Bank of America Merchant Services
alliance. However, the Financial Services Segment revenue was off 11% to
$339 million. The International Segment generated revenue of $415
million, down 10%. The Retail and Alliance Services Segment reported
revenue of $798 million, down 4% over 3Q/08. But, reimbursable debit
network fees soared by 41% to $719.5 million, offsetting the declines in
the other segments. During the quarter, Financial Services renewed 131
contracts in the quarter including a significant contract with GE. Also,
First Data’s International segment signed a long-term global agreement
with Barclays to provide technology for card issuing.
Additionally, First Data and RSA announced a new service called “First
Data Secure Transaction Management.” Bank of America Merchant Services
is First Data’s largest merchant acquiring alliance and was established
in June 2009 after the extension of similar alliances with Wells Fargo
and PNC in recent quarters. For complete details on First Data’s third
quarter performance visit CardData (www.carddata.com)

First Data Second Quarter Revenues Flat Y/Y

First Data reported that revenues for the second quarter were flat at $2.21 billion and adjusted earnings were $607 million, down 5% from the year ago quarter. The net loss for the quarter rose 22% from 2Q/08 to $195.9 million. Retail and Alliance Services reported revenue of $1.3 billion, up 8%. Financial Services revenue was $532 million, down 4%. International generated revenue of $404 million, down 13%. During the quarter FDC formed a new alliance with Bank of America Merchant Services, which will process more than one billion transactions per month. Also, FDC and PNC Bank extended their merchant alliance for an additional eight years; Wells Fargo expanded its agreement for card processing services; and the Company announced plans to move its headquarters to Atlanta. FDC noted that 33 new ISOs, 11 new referral partners and one new RSA were added to the Retail and Alliance Services distribution network; Financial Services renewed 68 contracts in the quarter; and International transactions grew 7%. For complete details on First Data’s second quarter performance visit CardData (www.carddata.com).

EGG MASTERCARD

First Data reported that revenues for the second quarter were flat at $2.21 billion and adjusted earnings were $607 million, down 5% from the year ago quarter. The net loss for the quarter rose 22% from 2Q/08 to $195.9 million. Retail and Alliance Services reported revenue of $1.3 billion, up 8%. Financial Services revenue was $532 million, down 4%. International generated revenue of $404 million, down 13%. During the quarter FDC formed a new alliance with Bank of America Merchant Services, which will process more than one billion transactions per month. Also, FDC and PNC Bank extended their merchant alliance for an additional eight years; Wells Fargo expanded its agreement for card processing services; and the Company announced plans to move its headquarters to Atlanta. FDC noted that 33 new ISOs, 11 new referral partners and one new RSA were added to the Retail and Alliance Services distribution network; Financial Services renewed 68 contracts in the quarter; and International transactions grew 7%. For complete details on First Data’s second quarter performance visit CardData (www.carddata.com).

TSYS Q2 Revenues Flat Sequentially; Down 4.5% Y/Y

TSYS reported that reported second quarter revenues declined 4.1% to $412.0 million, compared to 2Q/08, impacted somewhat by foreign currency exchange rates. Operating profit for the quarter declined 14.5% to $82.8 million. North America Services Q2 revenue declined from $282.7 million to $265.0 million. International Services revenue slipped from $79.9 million for 2Q/08 to $76.4 million. Merchant Services revenues rose from $74.6 million to $80.3 million for 2Q/09. TSYS noted that its International Services segment’s operating margin increased to 12.6% from 8.5% on a sequential quarter basis. The payment processor also noted that the conversion of Deutsche Bank in Germany is now complete and when the conversion of Carrefour in Brazil is completed in early 2010 it will drive future international revenues. The Company also announced that it is negotiating with a potential buyer for the sale of TSYS Debt Management, a subsidiary of TSYS, which is involved in the legal collections management and bankruptcy processing business. TSYS reaffirmed its previously released guidance for 2009 of declines in revenues of 5% to 3% and net income of 13% to 11%. For complete details on TSYS’ second quarter performance visit CardData (www.carddata.com).

TSYS REVENUE
2Q/08: $430 million
3Q/08: $500 million
4Q/08: $493 million
1Q/09: $409 million
2Q/09: $412 million
Source: CardData (www.carddata.com)

First Data Revenues Slip 2% for 1Q/09

First Data reported first quarter revenue of $2.1 billion, a decrease of 2% over the year ago quarter. The net loss for the quarter was $231.3 million, compared to a year-earlier net loss of $221.7 million. Retail and Alliance Services reported revenue of $1.2 billion, up 7%. Retail and Alliance Services signed 117,000 merchant locations in the quarter. In addition, 21 new independent sales organizations, 12 new referral partners and two new revenue share agreements were added to the distribution network. Financial Services’ first quarter revenue was $544 million, down 3%. Financial Services renewed 130 contracts in the quarter. For the quarter, International generated revenue of $369 million, down 16%. Transactions and point-of-sale locations grew at 10% and 9%, respectively. For complete details on First Data’s first quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

TSYS Slips 2.6% and Dumps TDM Unit

TSYS reports that revenues decreased 2.6% in the first quarter to $408.9 million. The Company also announced it is unloading its TSYS Debt Management unit as it is no longer a good strategic fit. TSYS says cardholder transaction volumes decreased 4.3%, and its POS volume increased only 1%. North America Services posted total segment revenues were $268.8 million, a decrease of 6.3%. The segment processed 1.48 billion transactions, a decrease of 6.8% and transactions for same clients were 1.47 billion, a decrease of 2.8%. International Services posted total segment revenues were $73.8 million, an increase of 5.7%. Merchant Services reported total revenues of $75.5 million, an increase of 6.4%. The Company is projecting total annual revenues of $1,637 million to $1,665 million or a decline of 5% to 3%. For complete details on TSYS’ latest results visit CardData ([www.carddata.com](http://www.carddata.com)).

First Data Q4 Revenue Rises 8% But Loss Widens

First Data reported fourth quarter revenue of $2.3 billion, an increase
of 8% over the year ago quarter. However, the net loss for the quarter
was $3.22 billion, compared to a year-earlier net loss of $273.2
million. Merchant Services reported revenue of $1.1 billion, up
18%. Financial Services revenue was $695 million, down 4%. International
generated revenue of $434 million, down 6%. During the quarter, First
Data announced the successful termination of its joint venture, Chase
Paymentech Solutions, with JPMorgan Chase and also extended its merchant
alliance joint venture, Wells Fargo Merchant Services for five years.
First Data also adopted a revised segment reporting structure on January
1st. The company’s segments will include Retail and Alliance
Services, Financial Services, International and Integrated Payment
Systems. For applicable prior year and quarterly periods, the company
will provide financials realigned to these segments in connection with
our first quarter 2009 Securities and Exchange Commission Form 10-Q
filing. For complete details on First Data’s fourth quarter performance
visit CardData ([www.carddata.com](http://www.carddata.com)).

TSYS Revenue Rises 8% Despite Lower Volume

TSYS reports that total revenues grew 8% to $493 million and net income
soared 45% to $66 million for the fourth quarter. North America Services
revenue was up 6% to $343 million even though the number of transactions
processed slipped 4% to 1.7 billion and the number of accounts on file
declined 9% to 319 million. Global Services’ revenue increased 14% to
$71 million and was unfavorably impacted by the strengthening of the
U.S. Dollar against the British Pound. Merchant Services’ revenue was
$79 million for 4Q/08, an increase of 7% over 4Q/07. During the quarter,
TSYS signed an agreement with Unicard Mexico;
began offering merchant payment services to PaySquare in the Benelux;
opened a new data center in Okinawa, Japan and signed AZ Card, OCS and
Nagasaki Kenmin Shinyo Kumiai to service 340,000 accounts; signed a
multi-year agreement with Sony Finance to process its newly introduced
credit card program; and announced that China UnionPay Data Services, a
joint venture with China UnionPay, signed processing agreements with
China Postal Savings Bank and Bank of East Asia. For 2009, TSYS projects
total revenue growth between 0% and 2% or $1.94 billion to $1.98 billion
and that net income will be flat or shrink up to 3% or between $243
million and $250 million. For complete details on TSYS’ fourth quarter
performance visit CardData ([www.carddata.com](http://www.carddata.com)).

TSYS REVENUE
4Q/07: $458 million
1Q/08: $462 million
2Q/08: $483 million
3Q/08: $500 million
4Q/08: $493 million
Source: CardData (www.carddata.com)

First Data Q3 Revenues Inch Up by 4.6%

First Data reported third quarter revenue of $2.164 billion, an increase of 4.6% over the year ago quarter. However, the net loss for the quarter was $164.4 million, compared to a net profit of $28.0 million for 3Q/07. The loss included $270 million of incremental interest expense and $124 million of incremental depreciation and amortization primarily attributable to the KKR transaction. Merchant Services produced revenues of $1.026 billion, up 9% from 3Q/07. Even though Merchant Services had 9% growth in transactions it was offset by the slowing U.S. economy, which reduced transaction growth for smaller merchants and shifted transactions to some nationwide discounters and wholesalers. Financial Services generated third quarter revenue of $699.8 million, down 5% from the year ago quarter. There was modest growth in the card issuing business offset by lost business and check volume declines in the TeleCheck business. International posted 3Q/08 revenue of $487.0 million, up 19% from 3Q/07. Revenue benefited from 21% transaction growth which was in part driven by acquisitions in prior quarters. During the quarter, First Data named Robert DeRodes as its CTO; mutually agreed to terminate its plans to merge InComm into First Data; and successfully terminated its joint venture, Chase Paymentech Solutions, with JPMorgan Chase. For complete details on First Data’s third quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

First Data 2Q/08 Revenues Climb 10%

First Data posted a 10% gain in second quarter revenues to $2.2 billion. Due to its KKR merger, the loss from continuing operations was $161 million for 2Q/08. Merchant Services produced second quarter revenues of $1 billion, a growth rate of 8% or flat excluding reimbursable debit network fees. Financial Services generated revenue of $704 million for the quarter, down 1% or down 4% excluding reimbursables and purchase accounting adjustments. FDC’s International posted revenue of $473 million, up 20% due to acquisitions in prior periods and a 23%
transaction growth rate. During the quarter, Merchant Services signed more than 175,000 domestic merchant locations as domestic merchant transactions grew 11%. Financial Services signed an agreement with Nordstrom. Also, International signed an agreement to acquire a significant ownership interest in EUFISERV. Additionally, FDC announced during the second quarter the winding down of its JV with Chase in regard to Chase Paymentech. For complete details on First Data’s second quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

TSYS’ Second Quarter Revenues Increase 5%

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)).