DENVER – First Data Corp. reported debt service related to its huge 2007 takeover continued to create losses at the transaction processing giant, even as growth in operating income helped trim the losses.
First Data, now owned by hedge fund Kohlberg Kravis Roberts, reported a fourth quarter loss of $69 million, down from a $179 million loss for the fourth quarter last year, as revenues declined by 2% for the quarter.
At the same time, operating profit for the fourth quarter, helped by lower costs of services and a reduction in reimbursable debit network fees paid to customers, more than doubled to $329.8 million.
“Despite a challenging economic environment, we grew adjusted EBITDA 11% for the full year of 2011 through a combination of top-line growth and expense reductions,” said Jonathan Judge, CEO of First Data. “Our commitment to bringing innovative products to market and serving our customers positions us well to take advantage of the dynamic changes in the payments industry.”
