IMGCAP(1)]
Global Payments Inc., an Atlanta-based transaction processor, said yesterday its net income for the fiscal first quarter ended Aug. 31 grew by 31.8%, 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. The company's fiscal year ends May 31. During a conference call with analysts late yesterday, Paul R. Garcia, Global Payments president and CEO, attributed the increases to growth in the company's international products and in the North American merchant-services segment, which includes independent sales organizations and transactions larger merchants make directly with the company. Global Payments' North American merchant-services business generated $286.6 million in fiscal first-quarter revenue, a 16.5% increase from $246.1 million in the same period a year ago. Revenue from international merchant services, including those in Europe and Asia-Pacific, totaled $82.3 million, a 176.2% increase from $29.8 million. Garcia cited the company's expansion in Europe as a major factor for that growth. Global Payments recently formed a joint venture payment-processing company with HSBC for United Kingdom merchants (CardLine, 6/17). The Global Payments results bested at least one analyst's expectations. Robert P. Napoli, senior research analyst at Minneapolis-based Piper Jaffray & Co., forecasted fiscal first-quarter revenue of $395 million. In a research note to investors, Napoli attributed Global Payments' performance to stronger-than-anticipated growth in Canadian and European merchant-services revenue. Garcia added that the company raised its 2009 annual revenue forecast to between $1.64 billion and $1.68 billion versus an earlier forecast of $1.62 billion to $1.675 billion.
