DENVER – First Data Corp. reported continued high expenses related to its 2007 going-private buyout by private equity’s Kohlberg Kravis Roberts & Co. kept it in the red for the first quarter to the tune of $208.4 million.
The processing giant, which lost $1.1 billion in 2009, reported a $448.9 million interest expense for the first quarter of 2010, wiping out a $70 million operating profit for the quarter.
Revenues continued to grow at a healthy pace, by 16% in the first quarter, to $2.4 billion, with sales for merchant related services surging 27% for the period to $792.4 million. Growth in the merchant services segment was driven by the formation of the Bank of America Merchant Services alliance which has extended First Data’s leadership in merchant acquiring.
“In the first quarter, First Data focused on growth,” said Joe Forehand, hired at the end of 2009 as CEO. “The consistency of our strategy has positioned us well in an improving economy.”
First Data was taken private by KKR in one of the biggest takeovers ever, a $27 billion buyout.
