Driven by increases in debit-network fees, First Data Corp. on Nov. 4 reported revenue of $2.6 million for the third quarter ended Sept. 30, up 8% from the same period last year. Adjusted revenue of $1.6 million was up 2%, helped by growth in the Retail and Alliances Services and Financial Services units, the company said.
Earnings before interest, taxes, depreciation and amortization were $526 million, up slightly from $525 million a year earlier.
By segment, Retail and Alliance Services earned revenue of $851 million, up 7% from a year earlier, driven by 9% growth in transaction volume; continued penetration of complementary products, including check processing, prepaid card and point-of-sale equipment; and a timing benefit from card-association fees. Credit mix remained stable at 72%, and the regional average ticket was $69, down 3% from the same quarter last year, First Data said.
Financial Services revenue increased 4%, to $354 million. New business and growth in transaction volume were offset by pricing pressures and customer losses; active card accounts declined 4%.
International segment revenue fell slightly, to $402 million, though on a constant-currency basis revenue grew by 2%, First Data said. Increases in merchant-acquiring business, especially through a new alliance in India, were offset by declines in the card-issuing business, the processor said.
