HOUSTON – Cardtronics Inc., which is carving out a major stake in the electronic funds market through credit unions, reported sharply wider third quarter losses on Friday, as its prepares to go public in an initial public offering.
The nation’s largest operator of ATMs reported losses of $10.7 million for its fiscal third quarter, up from losses of $327,000 for the same quarter last year.
The wider losses come even though the operator of 28,600 U.S. ATMs, reported a 45% increase in third quarter revenues, to $110.7 million. The main cause of the losses was an 80% surge in operating expenses, as Cardtronics has continued to add new EFT businesses, culminating in the third quarter acquisition of the financial services business of 7-Eleven convenience stores and its 5,500 in-store ATMs.
For the first three quarters of the year Cardtronics reported a 12% increase in revenues to $262.3 million, and losses of $19.9 million.
Cardtronics has a deep footprint in the credit union industry by virtue of its connections to the CO-OP Financial Services and Credit Union 24 ATM networks, the Financial Service Centers Cooperative shared branch network, and its own Allpoint ATM network.
