ATLANTA – First Data Corp., the nation’s largest payments processor, reported Friday that financing charges connected to its $27 billion buyout by Kohlberg Kravis Roberts & Co. two years ago continue to weigh heavily on its profits and created a $288.9 million third quarter loss.
The third quarter red ink make total losses for the first nine months of the year $716.1 million, even as revenues continue to climb, the processing giant and parent of Star Systems EFT reported.
Third quarter revenues were rose a strong 13% to $2.44 billion, and three-quarter revenues rose 4% to $6.73 billion.
But debt service to finance the huge buyout continue to eat into profitability, with $447.5 million of interest expense for the third quarter and $1.35 billion of interest expense for the first three quarters.
Separately, First Data, which has trimmed its workforce by more than 1,200 since the buyout, announced last week it is laying off about 250 employees.
