First Data Corp.'s second-quarter loss narrowed as revenue increased at its merchant-related and check-services operations.
The electronic payments processor saw top-line growth of 25% and 16%, respectively, for those operations. First Data's card-services arm had a 5% decrease in revenue.
The company was taken private by Kohlberg Kravis Roberts & Co. in 2007 in a $26.4 billion deal that saddled the company with debt. First Data has been in the red since then and KKR was said to have been eyeing an exit plan for its investment. But an IPO is not likely to happen this year given the market turbulence and the company's high debt load, analysts said. The company, which saw three executives leave in May, had $22.3 billion of long-term debt as of June 30, flat from December.
First Data's loss narrowed to $171.2 million from $195.9 million as operating margin rose to 5.6% from 5.4%. The company also had $24.8 million in so-called other income in the latest quarter, compared with prior-year costs of $3.6 million.
Revenue jumped 18% to $2.61 billion, but increased just 4% excluding impacts such as reimbursable debit-network fees and postage.
Sales at First Data's retail and alliance services segment, its largest business, rose 13% on 9% transaction growth, pushing profit up 6%.
International revenue climbed 2% on a constant-currency basis due to an alliance with ICICI Bank in India and volume increase in Latin America. But profit dropped 30% mainly on write-offs and declining prices.