IMGCAP(1)]
First Data Corp. today reported a $164.4 million net loss for the third quarter ended Sept. 30. That compares with a $28 million net gain the transaction processor posted for the same period last year. Revenue totaled $2.2 billion, up 4.8% from $2.1 billion. First Data attributes the loss to reimbursable fees for acquiring PIN-debit transactions and to depreciation and amortization costs that stem from the Sept. 24, 2007, buyout of the company by Kohlberg Kravis Roberts & Co. First Data experienced the most growth from its international business, which recorded revenue of $487 million, up 18.6% from $410.6 million a year ago. Revenue for the company's prepaid business totaled $56.3 million, up 12.6% from $50 million. First Data's merchant-services segment, which includes transaction processing, generated $1.03 billion in revenue, up 6% from $968.3 million. The financial-services segment earned $699.8 million in revenue, down 5.1% from $737.6 million. First Data's integrated payment systems segment experienced the largest revenue decrease, 321%, to a loss of $32.9 million from $14.9 million. Integrated payments involves agents issuing official checks and money orders. Greenwood Village, Colo.-based First Data is winding down that business and is selling the assets to The Western Union Co. First Data CEO Michael D. Capellas told analysts today during a conference call that the company's balance sheet is "in good shape," with the company holding cash and cash equivalents totaling $579 million. "In addition, we have ample available resources to meet all of our obligations as well as to invest in new products which will improve the business," Capellas said.
