ATLANTA First Data Corp. said it hired Frank Bisignano, co-chief operating officer at JP Morgan Chase, as its CEO, as losses continued to mount from its huge 2007 leveraged buyout by Kohlberg Kravis Roberts & Co.
The processing giant reported a $337.4 million first quarter loss this morning, more than double the $152.5 million loss for the first quarter last year, as debt service financing the $27 billion LBO, one of the biggest ever, continues to weigh down earnings. Interest expense for the first quarter rose to $469 million, from $461 million for the same period last year. The company has not reported a quarterly profit since the huge takeover.
First quarter revenues were flat at $2.6 billion.
Bisignano, the former head of Citigroup's global transactions services business, succeeds Ed Labry who has been serving a dual role as both president of retail and alliance services and interim CEO since Jan. 28. Labry, a well-known industry figure who once headed Concord EFS was named interim CEO after the surprise resignation of CEO Jonathan Judge for health reasons.
