First Data Pares Q4 Loss, Sees Bump in Revenue

Feb. 7, 2011

Atlanta-based payments processor First Data Corporation reported fourth quarter revenue of $2.7 billion, up 6 percent compared to 2009. The company said revenue growth was primarily attributable to increases in debit network fees and merchant related services from the favorable impact of modest U.S. economic growth. For the fourth quarter, First Data posted a loss of $179 million, a year-over-year improvement of $189 million. Consolidated revenue for the full year 2010 was up 11 percent to $10.4 billion due to the formation of the Bank of America Merchant Services alliance and increases in debit network fees. “We are encouraged by the solid growth in our U.S. merchant acquiring business driven by an improving economy and related consumer spending,” said Jonathan J. Judge, CEO of First Data. “As we start a new year, First Data is focused on increasing profitability by driving revenue in the U.S. and key markets in Latin America and Asia, managing through U.S. regulatory changes, and improving operational efficiency in Europe.”