IMGCAP(1)]
Citing "broad slowdowns in consumer spending," First Data Corp. today reported a $231.3 million loss for the first quarter ended March 31, nearly $10 million more than the $221.7 million loss the Greenwood Village, Colo.-based processor experienced during the same period last year. Revenue totaled $2.07 billion, down 2% from the $2.12 billion result a year ago. The company's retail and alliance services unit, which provides processing and acquiring services, generated revenue of $1.2 billion, up 9% from $1.1 billion. Financial services, which provide products and services to financial institutions, generated $544.2 million in revenue, down 2.6% from $558.5 million. Revenue from First Data's international business fell 16%, to $368.7 million from $439.1 million. In its quarterly U.S. Securities and Exchange Commission earnings report, First Data noted that in terms of consumer spending during the quarter, not as many consumers shopped at large discount merchants as in the fourth quarter of 2008. Large discount merchants often can strike processing deals that have better rates for merchants at the expense of profit margins for a processor. Decisions by many U.S. card issuers to reduce credit limits, close accounts and tighten issuing standards also affected First Data's financial-services business, the company said.
