First Data: $2.1Billion Q1 Revenue

First Data Reports First Quarter Revenue of $2.1 Billion
PIN Payments News on May 18, 2009 at 5:18 AM

• Revenue growth of 1% on a constant currency basis
• Signed 117,000 domestic merchant locations
• Renewed 130 contracts with financial institutions
• International transactions up 10%, total card accounts on file up 5%

DENVER, May 15, 2009 (PIN Payments News Blog) -- First Data Corp reportedits financial results for the quarter ending March 31, 2009.Consolidated revenues were $2.1 billion, down 2% or up 1% on a constantcurrency basis. Adjusted earnings before interest, taxes, depreciationand amortization (EBITDA) were $491 million, down 15% or down 11% on aconstant currency basis. In addition to the adverse impact of thestrong U.S. dollar, adjusted EBITDA comparisons were unfavorablyaffected by lower royalties following a large increase in the firstquarter of last year. Excluding currency effects and the change inroyalty revenue, adjusted EBITDA was down 6%. The net loss attributableto First Data was $231 million.

"Our revenue base held steady in the quarter as we added newmerchant and bank customers," said Michael Capellas, chairman and CEOof First Data. "We will continue to invest in new product developmentto fuel long-term growth while driving cost efficiencies to sustainprofitability."

Segment Results

Retail and Alliance Services: Retail and Alliance Services reported revenue of $1.2 billion, up7%. Retail and Alliance Services signed 117,000 merchant locations inthe quarter. In addition, 21 new independent sales organizations, 12new referral partners and two new revenue share agreements were addedto the distribution network. Excluding debit network fees, segmentrevenue was down 7% and was primarily affected by weakness in theoverall economy and continued transaction mix shifts. EBITDA was $242million, down 19%, and EBITDA margin excluding debit network fees was33.2%. Operating profit was $54 million, compared with $83 million inthe first quarter of 2008. Operating profit margin was 4.7%.


Financial Services: For the quarter, Financial Services revenue was $544 million, down3%. Revenue excluding reimbursables was down 1%. Financial Servicesrenewed 130 contracts in the quarter. EBITDA was $158 million, down 6%,and EBITDA margin excluding reimbursables was 42.5%. Operating profitwas $76 million, compared with $90 million in the first quarter of2008. Operating profit margin was 13.9%.

International: For the quarter, International generated revenue of $369 million,down 16%. Revenue on a constant currency basis, excluding acquisitionsand divestitures, was up 1%. Transactions and point-of-sale locationseach showed healthy growth at 10% and 9%, respectively. EBITDA was $73million, down 9%, and EBITDA margin was 19.9%. On a constant currencybasis, EBITDA was $91 million, up 13%, and EBITDA margin was 20.4%.Operating profit was $7 million, compared with $19 million in the firstquarter of 2008. Operating profit margin was 1.8%.

Other Matters: Segment Realignment: Effective Jan. 1, 2009, First Data adopted a revised segmentreporting structure. The company's segments include Retail and AllianceServices, Financial Services, International and Integrated PaymentSystems. For applicable prior year and quarterly periods, the companyhas provided financials realigned to these segments in connection withour first quarter 2009 Securities and Exchange Commission Form 10-Qfiling.
Non-GAAP Measures

In certain circumstances, results have been presented that arenon-GAAP measures and should be viewed in addition to, and not in lieuof, the company's reported results. Reconciliations to comparable GAAP(generally accepted accounting principles) measures are available inthe accompanying schedules and in the "Investor Relations" section ofthe company's web site at www.firstdata.com.


Investor and Analyst Conference Call

The company hosted a conference call and webcast on Friday, May15, at 8 a.m. EDT to review first quarter 2009 financial results.Michael Capellas, chairman and CEO of First Data, will lead the call.Also participating will be Phil Wall, chief financial officer, andSilvio Tavares, senior vice president, investor relations. A replay of the call will be available through May 20, 2009, at 888-20... (U.S.) or +1-719-... (outside the U.S.), replay pass code 9703413, and via webcast at http://ir.firstdatacorp.com/events.cfm.  Please note: All statements made by First Data officers on this callare the property of First Data and subject to copyright protection.Other than the replay, First Data has not authorized, and disclaimsresponsibility for any recording, replay or distribution of anytranscription of this call.

About First Data
First Data powers the global economy by making it easy, fast andsecure for people and businesses to buy goods and services usingvirtually any form of electronic payment. Whether the choice of paymentis a gift card, a credit or debit card or a check, First Data securelyprocesses the transaction and harnesses the power of the data todeliver intelligence and insight for millions of merchant locations andthousands of card issuers in 36 countries. For more information, visit www.firstdata.com. 

Full financial tables can be found here http://ir.firstdatacorp.com/releaseDetail.cfm?ReleaseID=384261

SOURCE: First Data Corporation
First Data
Investor and Analyst Relations:
Silvio Tavares, 303-967-8276
silvio.tavares@firstdata.com