Tsys today announced its financial results for the third quarter ended September 30, 2008.
Total revenues grew 9.4% to $500.4 million compared to $457.6 million in the prior year. Earnings per share for the third quarter were $0.33.
"In spite of the turbulent economic times, we had a good quarter, fueled by revenue growth in our North American and Global Services segments, and decided to release our earnings early," said Philip W. Tomlinson, chairman and chief executive officer of TSYS. "While much depends on consumer confidence and, as always, the upcoming holiday shopping season, which we now believe will be slow, we are reaffirming our net income guidance of an increase of 5% to 7%," added Tomlinson.
Key Segment Results for the Third Quarter
North American Services
- Increased revenues by 6.8%
- Signed a multi-year commercial and consumer credit card processing agreement with First Citizens Bank of Raleigh, North Carolina. TSYS also provides merchant acquiring services to First Citizens
- Signed a multi-year agreement with Banco Wal-Mart de México Adelante, S.A. to launch its consumer credit card that includes fraud detection and analytic services
- Signed an agreement with Metrofinanciera for the launch of a new credit card program in Mexico
- Announced a partnership with Paragon Benefits in the roll-out of the My Care CardSM to provide an "off-the-shelf" card product for flexible benefit payment processing
- Increased revenues by 31.9%
- Improved operating profit margin by 174 basis points to 19.0%
- Signed a multi-year agreement to service approximately 3 million private-label store accounts for Argos and Homebase retail brands that are part of Home Retail Group, the UK's leading home and general goods retailer
- Generated an operating profit margin of 22.9%
- Increased point-of-sale transaction volumes by 2%
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