Continued weakness in the gaming sector and consumer revolving credit, coupled with the loss of Harrah’s Entertainment’s casino business, the company’s largest customer, late last year, created some first quarter financial difficulties for Global Cash Access Holdings Inc., the company announced May 10.
The Las Vegas-based company provides cash access and related products to casinos through ATMs, point-of-sale debit card transactions, credit card cash advances and check-warranty services.
During the quarter ended March 31, revenues totaled $134.4 million, down 15.2%, from $158.5 million during the same period last year. Net income was down 75.4%, to $1.7 million from $6.9 million.
ATM revenues during the quarter totaled $71.2 million, down 13% from $81.8 million. Check-warranty revenues dropped 16.9%, to $6.4 million from $7.7 million. Cash-advance revenues totaled $50.9 million, down 22.9% from $66 million.
ATM transactions totaled 17.7 million, down 14.1% from 20.6 million. Check-warranty transactions dropped 15.4%, to 1.1 million from 1.3 million. Cash-advance transactions totaled 2.1 million, down 25% from 2.8 million.
In terms of aggregate dollar amounts processed, ATM volume totaled $3.1 billion, down 13.9% from $3.6 billion. Check-warranties remained unchanged at $300 million. Cash advances totaled $1.1 billion, down 15.4% from $1.3 billion.
