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Alliance Data Systems Corp. this week reported a 4.1% first-quarter revenue increase in its Private Label Services segment, to $98.4 million from $94.5 million during the same time period in 2008. The segment includes network processing and marketing for Dallas-based Alliance Data's more than 100 private-label and co-branded card programs. The transaction processor's Private Label Credit segment posted revenue of $186.5 million for the quarter, down 10.8% from $209.1 million. Overall net income decreased 4.3%, to 27.9 million from $49.3 million. Total revenue decreased 3.8%, to $480.3 million from $499.3 million. Regarding Private Label Credit, the company did "not add enough portfolio growth to fully mitigate the higher credit losses," Ed Heffernan, president and CEO, said in a statement. "We expect to balance the higher credit losses with lower funding as the year progresses while also looking for additional growth in the portfolio." But Alliance Data notes some strong additions in 2008, including HSN Interactive LLC, a leading multi-channel lifestyle retailer, and Haband, a specialty retailer focused on consumer age 50 and older. It also renewed its Pacific Sunwear of California Inc. contract.
