Western Union Spin-Off Weighs Down First Data

DENVER – First Data Corp., the focus of a huge takeover, reported yesterday that net income for its first quarter plunged 59% because of the absence of the company’s profitable Western Union operations that were spun off last fall. Net income for the first quarter was $175 million, or 23 cents a share, compared to $430 million, or 56 cents a share, for the same period last year when Western Union was included. Even still, revenues from continuing operations were up a healthy 12% to $1.8 billion for the quarter, as the company reported strong growth in its merchant services, check services and card services operations. First Data, which has been on a buying frenzy on its own, has agreed to be taken over by private equity giant Kohlberg Kravis Roberts & Co. for $29 billion, one of the largest deals ever. Meantime, in recent weeks First Data has acquired Wells Fargo’s Instant Cash Systems ATM network and FundsXpress online services provider.