12 December 2017
visit www.aciworldwide.com

First Data reviews US card issuing business; cuts 2005 outlook

09 November 2005  |  4632 views  |  0 First Data logo

First Data is looking to shed its under-performing US credit card issuing business, which it says is a drain on the entire company's financial results. The news comes as the vendor cuts it earnings forecast for 2005 again.

In a statement First Data says it has hired Morgan Stanley to help explore options for the US credit card unit.

Charlie Fote, chairman and chief executive officer, First Data says: "This business continues to dampen the growth rates of the entire company, and maximising shareholder value over the long term remains our top priority."

The vendor says it expects the business to continue hurting its overall growth rates through the middle of 2006.

Taking into account October operating results and delays in closing acquisitions, First Data says it now expects full-year earnings of $2.14 to $2.16 a share for 2005, and says final fourth quarter results will be heavily influenced by consumer spending during the Thanksgiving to Christmas season.

First Data previously cut its 2005 outlook in August, to a profit of $2.19 to $2.23 per share, from a previous forecast of $2.23 to $2.32 per share.

The vendor's shares fell $1.41 to $41.10 on the New York Stock Exchange on the news.
KeywordsFINDEX

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

First Data acquires majority stake in Korea Mobile Payment Services

First Data acquires majority stake in Korea Mobile Payment Services

20 October 2005  |  6049 views  |  0 comments
HBOS targets Australian market with First Data merchant acquiring JV

HBOS targets Australian market with First Data merchant acquiring JV

06 September 2005  |  5781 views  |  0 comments
First Data to acquire Austrian Payment Systems Services

First Data to acquire Austrian Payment Systems Services

05 August 2005  |  5585 views  |  0 comments
First Data and BNL form merchant acquiring joint venture

First Data and BNL form merchant acquiring joint venture

14 June 2005  |  5639 views  |  0 comments
First Data targets CEE markets with EuroProcessing acquisition

First Data targets CEE markets with EuroProcessing acquisition

10 June 2005  |  6995 views  |  0 comments
First Data inks Suncorp merchant processing deal

First Data inks Suncorp merchant processing deal

31 May 2005  |  4481 views  |  0 comments
First Data acquires Fineco card processing unit

First Data acquires Fineco card processing unit

13 January 2005  |  4926 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.solutions.lexisnexis.comvisit http://info.nice.com

Who is commenting?

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
11786 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
8712 views comments | 15 tweets | 21 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7077 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
6818 views comments | 20 tweets | 11 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
6755 views comments | 17 tweets | 35 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job