IMGCAP(1)]
Payments processor Global Payments Inc. yesterday reporting fiscal fourth quarter net income of $37.6 million, down 7.8% from $40.8 million during the same period last year. Revenues totaled $402 million, up 16.9% from $343.8 million. Atlanta-based Global Payments' fiscal year ends May 31. Full-year revenue was $1.6 billion, up 20.3% from $1.33 billion in fiscal 2008. Net income for the fiscal year was $37.2 million, a 77.1% drop from $162.8 million. Paul R. Garcia, Global Payments chairman and CEO, told analysts during a conference call yesterday that almost all of the company's products are performing well with the exception of the funds-transfer business. "The money-transfer business continues to face challenging macroeconomic and immigrant-labor trends," he said. Global Payments had a $147.7 million charge against its money transfer business in its 2009 fiscal year, a spokesperson says. Global Payments experienced its largest increase in revenue during the quarter and the fiscal year in its international business. For the quarter, international merchant services generated revenue of $92.9 million, up 156% from $36.3 million a year earlier. For the fiscal year, international revenue totaled $355.5 million, up 169% from $132.1 million. North America fourth-quarter revenue totaled $275 million, up 2.9% from $267.2 million a year ago. For the fiscal year, Global Payments generated $1.1 billion in North America merchant services revenue, up 10.2% from $998.5 million in fiscal 2008. Garcia cited the performance of independent sales organizations and the company's direct processing agreements with larger merchants as the primary causes of the improvement. The funds-transfer business generated revenues of $37.6 million during the quarter, down 7.8% from $40.8 million during the same period last year. For the fiscal year, the business generated revenue of $139.2 million, down 3.2% from $143.6 million in fiscal 2008.
Web Seminar: Available On-Demand
