IMGCAP(1)]
Consumer spending at merchants processing with Global Payments Inc. is slowing, but the Atlanta-based payments processor continues to see growth globally, says Paul R. Garcia, chairman, president and CEO. Last week, Global Payments said its net income for the fiscal first quarter ended Aug. 31 grew by nearly 32% to $57.5 million from $43.6 million during the same quarter a year ago. Revenue grew by 30.5%, to $405.8 million from $311 million (CardLine, 10/3). Garcia acknowledged that the softer U.S. economy is affecting the company. "Now, the good news for us, with our strong ISO channels, [this] still means pretty significant growth," Garcia said. "It's just not as robust." Global Payments' North American merchant-services business generated $286.6 million in first-quarter revenue, a 16.5% increase from $246.1 million in the same period a year ago. Despite economic changes, Garcia said Global Payments is positioned well because it has a number of processing contracts with education, health care and government organizations, which are nondiscretionary spending categories. "It is a cautious environment we are watching carefully, but we are as well positioned as one can be given the macro trends," he said. Global Payments' revenue from international merchant services, including those in Europe and Asia-Pacific, totaled $82.3 million, a 176.2% increase from $29.8 million.
