ATLANTA – Processing giant First Data Corp. reported this morning its core businesses continue to grow but debt service left over from the $27 billion 2007 leveraged buyout by Kohlberg Kravis Roberts & Co. continued to generate huge losses.
The company reported a first quarter loss of $153 million, down from a $217 million loss for the same period a year ago, even as interest on it huge LBO debt continues to grow. The company reported $461.1 million of interest payments for the first quarter, up $54 million from the same quarter last year.
Over the past 12 months First Data has been a profitable company, but $1.84 billion of interest expense has left it $451.5 million in the red. In fact, for the first quarter operating net was $217 million.
First quarter revenues were $2.56 billion, up 1% from last year. The company’s retail and alliance services reported an 11% rise in revenues to $847 million; financial services grew 2% to $346 million; and international by 3% to $405 million.
