Much speculation unfolded about what the loss Green Dot Corp.’s processing business might do to Total System Services Inc. But the company showed no signs of immediate concern in reporting a modest first quarter increase in revenue April 24.
Green Dot dropped TSYS as its processor in January (
The Columbus, Ga.-based processor reported a jump in revenue to $461.2 million for the quarter ended March 31, up 7.4% from $429.4 million during the same period last year. Net income jumped 16.6%, to $57.6 million from $49.4 million.
“Our first-quarter results continue to benefit from strong same-client transaction growth, which was 14.4% in our card issuer processing business, when compared to last year,” Philip W. Tomlinson, chairman and chief executive officer of TSYS, stated in a press release.
Tomlinson said he believed the company was on target to deliver “double-digit growth” in earnings per share for investors and deliver a “solid top-line revenue increase in 2012.”
Revenue from North American business increased 4.9%, to $204 million from $194.5 million, while international services revenue rose 10.6%, to $100.3 million from $90.7. Merchant services experienced an 8.5% revenue increase, to $125.5 million from $115.7 million.
Just before releasing its earnings report, TSYS announced it had landed a new contract to process the credit card portfolios of Columbus, Ohio-based Huntington Bancshares Inc., which has more than 660 local branches throughout a six-state region.
In addition, the company reported a renewal of a key long-term processing contract with Royal Bank of Scotland on April 23 (
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