First Data has extended its merchant alliance joint venture with Wells Fargo for five years, the US payments processor revealed today in its full year earnings statement.
As part of the deal, First Data has sold 12.5% of the membership interests in the Wells Fargo Merchant Services venture to the bank for an undisclosed cash consideration. Wells now owns 60% of the company, with First Data holding 40%.
For the fourth quarter First Data posted a net loss of $3.22 billion, compared to a $273 million loss the previous year. However, this includes a non-cash goodwill impairment charge of $3.2 billion. Revenue for the quarter was up eight per cent to $2.3 billion.
The firm's merchant services unit reported revenue of $1.1 billion, up 18% with operating profit rising 14% to $104 million for the quarter.
In contrast, lower cheque volumes saw the financial services unit post a revenue fall of four per cent, to $695 million. International revenue was down six per cent, to $434 million, on the strong dollar.
Revenue for the full year was up nine per cent, to $8.8 billion. The full year net loss was $3.8 billion.