First Data Earnings Plunge After Western Union Spin-Off
DENVER –First Data Corp. said fourth quarter profits plunged after the spin off of its Western Union division, by 34% to $278.5 million, or 37 cents a share, compared to the fourth quarter last year. As a result, net income for the full year declined 12% to $1.5 billion, or $1.95 a share, compared to fiscal 2005. The company reported a 14% gain in revenues for the fourth quarter, including a 10% rise in revenues from merchant services and a 14% rise in card services. Merchant services revenues were up 12% for the year, and card services by 6%.