MO-based Jack Henry & Associates reported a 21% increase in revenue, and 22% increase in net income for 4Q/04, compared to one-year ago. For the quarter ended December 31, 2004, the company generated total revenue of $136.0 million compared to $112.7 million in the same quarter a year ago. Gross profit increased to $54.7 million compared to $44.7 million in the second quarter of last fiscal year. Jack Henry & Associates, Inc. provides integrated computer systems and processes ATM and debit card transactions for banks and credit unions. Jack Henry markets and supports its systems throughout the United States and has over 7,700 customers nationwide.Details
TransUnion has been spun off from The Marmon Group of companies and has formed a new board with Penny Pritzker servings a chairman of TransUnion Corp. Since joining The Marmon Group in 1981, TransUnion has grown to become a leading global provider of information-based services, with sales of more than $1 billion. The Marmon Group is an international association of about 100 companies, primarily manufacturers, operating independently within diverse business sectors. Collective revenues exceeded $6 billion in 2004.Details
NCR says it anticipates fourth-quarter revenue to be $1.79 billion, an increase of 9% year-over-year. NCR is increasing its guidance for 2005 earnings per share to $2.30 to $2.40, on a pre-stock-split basis, from $2.15 to $2.25, including $135 million to $140 million of pension expense, which is $10 million to $15 million more than earlier expected and comparable with the pension expense included in NCR’s 2004 results. NCR Corporation is a leading global technology company helping businesses build stronger relationships with their customers.Details
GE Consumer Finance-Canada has purchased the small business MasterCard portfolio in Canada of First Data Loan Company Canada. Under terms of the agreement, First Data will provide card processing services for the accounts. The deal marks GE’s first entry into the Canadian market. First Data says it unloaded the portfolio to continue to focus on its core competency.Details
Los Angeles-based Oberthur Card Systems has been selected by the U.S. GPO as a key supplier to provide the technology for the development and testing of the U.S. electronic passport. Oberthur Card Systems’ machine-readable e-passports incorporate the certified FIPS-201 Level 3 contactless chip that is compliant with new International Civil Aviation Authority (ICAO) specifications as well as Public Key Infrastructure (PKI) recommendations. The chip is used to store biometric information and is fully compatible with 20 major radio frequency smart card readers. Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications including SIM and multi-application smart cards and services ranging from consulting to personalization.Details
NOVA Information Systems and Givex have teamed to add enhanced functionality and distribution channels for electronic payment, gift, loyalty and check products. The relationship introduces enhanced functionality to both Givex’s and NOVA’s solution portfolios. Additionally, it opens new distribution channels for Givex, and provides NOVA with extended cross-sell and up-sell opportunities. Givex Corporation (www.givex.com) is a card management company specializing in gift card and loyalty transaction processing for a wide range of industries including retail, hospitality, grocery, shopping centers and petroleum. NOVA Information Systems, a leader in the payment processing industry, is a wholly owned subsidiary of U.S. Bancorp.Details
First Data has named Nandita Bakhshi as managing director of Mobile Solutions, a new business unit focused on offering mobile payments and related services. Bakhshi joins First Data from U.S. financial services firm, FleetBoston, and will lead First Data Mobile Solutions, a business unit focused solely on mobile services, including mobile payments, prepaid top-up and mobile content. Her appointment confirms First Data’s commitment to driving the development of the mobile payments sector. First Data Corp. (NYSE: FDC), with corporate headquarters in Denver, Colorado (U.S.A.), helps power the global economy.Details
MasterCard released a new report on the impact of low cost carriers on the airlines industry in Asia/Pacific. The report explains how LCCs may generate more traffic volumes and induce a faster growth in revenue paying passengers by enticing lower income travelers to travel in and around the region. MasterCard found that the point-to-point system and restricted distribution channels gives LCCs an enormous advantage over full service carriers. Furthermore, their simplified fleet structure and outsourcing of the technical functions produce significant advantages over full service carriers. LCCs operate most successfully in the common ‘open skies’ environment in Europe and the US. In Asia/Pacific, however, there is no common open skies arrangement.
If there is an Asia/Pacific open skies environment than all players will
be forced to deal with price compression more aggressively as LCCs
penetrate all or most of the medium and short-haul sectors,
significantly impacting the competitive structure in the region.
After announcing a suite of prepaid “status” cards yesterday, United Airlines and Bank One announced a new program for “Mileage Plus VISA” cardholders. Under the new program cardholders earn “Elite Qualifying Miles” and double redeemable miles for every dollar spent on united.com during 2005. “EQM” are valid toward “Mileage Plus” elite status: “Premier” (25,000 miles); “Premier Executive” (50,000 miles), and “1K” (100,000 miles). The new program applies to the “Signature VISA Card,” “Signature Gold Class VISA Card,” “Platinum Business Card” and the “Mileage Plus Debit Card.” (CF Library 1/18/05)Details
J.P. Morgan Chase reported this morning that credit card profits for the fourth quarter were $515 million on revenues of $3.83 billion. Managed card loans of $135.4 billion were up 5% year-on-year, and up 3% sequentially. During the fourth quarter, Chase added 2.73 million net new credit card accounts, ending the quarter with 94.3 million cards in-force. Charge volume for the fourth quarter was $75.3 billion, compared to $69.1 billion one-year ago. The managed net charge-off ratio for the quarter declined to 5.24%, from 5.48% in the prior year, and increased from 4.88% in the prior quarter due to seasonally higher losses. The 30-day managed delinquency ratio was 3.70%, down from 4.21% in the prior year, and 3.81% in the prior quarter due to improved credit quality. Bank card volume for Chase’s merchant acquiring business was $135.9 billion with 4.5 billion transactions. Chase also reported that it ended the quarter with 8,392,000 debit cards. For complete details on Chase’s fourth quarter performance, visit CardData ([www.carddata.com]).
Atlanta-based Lynk Systems has changed its company name to RBS Lynk Incorporated, following its acquisition by The Royal Bank of Scotland Group. RBS is a significant force in the payments industry in Europe and plans to leverage its expertise to win new national accounts for RBS Lynk in the U.S. market. As part of the RBS Group’s U.S. holdings, RBS Lynk will report up through the Citizens Financial Group as part of a newly created division called Retail Direct, USA, focused entirely on the payment processing industry. RBS Lynk is a single-source provider of electronic payment processing services (including credit, debit, EBT, gift cards, customer loyalty cards, checks and more).Details
China Southern Airlines is giving credit cards to all EMBA students enrolled in the Tsinghua Management College at Tsinghua University. The “Sky Pearl Club Gold MasterCard” arrangement is part of a broader deal signed between China Southern and Tsinghua. Currently, Tsinghua has over 20,000 students, including 12,000 undergraduates, 6,200 master’s degrees candidates and 2,800 doctoral candidates.
China Southern Airlines is the largest airline in The People’s Republic of China connecting to more than 80 cities around the globe.