Prepaid card marketer NetSpend Holdings Inc. reported a 10.3% year-over-year increase in revenue on Wednesday as use of its cards rose.
The Austin, Texas, company said that operating revenue in the second quarter reached $74.4 million. The volume of debit transactions and cash withdrawals that customers made with its reloadable cards rose 13%, to $2.6 billion.
NetSpend's results demonstrate the "scale capacity of" the company's platform, Dan Henry, its chief executive, said in a press release.
Net income in the quarter rose 17.6%, to $7.6 million, or 8 cents per diluted share, from $6.4 million, or 7 cents per diluted share, a year earlier.
The company said the number of active cards that were enabled with direct deposit capabilities, a feature the company pushes to increase use of the cards, rose 25.4%, to 771,000.
