First Data Corp. today reported its financial results for the quarter ending March 31, 2009.
Consolidated revenues were $2.1 billion, down 2% or up 1% on a constant currency basis. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $491 million, down 15% or down 11% on a constant currency basis. In addition to the adverse impact of the strong U.S. dollar, adjusted EBITDA comparisons were unfavorably affected by lower royalties following a large increase in the first quarter of last year. Excluding currency effects and the change in royalty revenue, adjusted EBITDA was down 6%. The net loss attributable to First Data was $231 million.
"Our revenue base held steady in the quarter as we added new merchant and bank customers," said Michael Capellas, chairman and CEO of First Data. "We will continue to invest in new product development to fuel long-term growth while driving cost efficiencies to sustain profitability."
Retail and Alliance Services
Retail and Alliance Services reported revenue of $1.2 billion, up 7%. Retail and Alliance Services signed 117,000 merchant locations in the quarter. In addition, 21 new independent sales organizations, 12 new referral partners and two new revenue share agreements were added to the distribution network. Excluding debit network fees, segment revenue was down 7% and was primarily affected by weakness in the overall economy and continued transaction mix shifts. EBITDA was $242 million, down 19%, and EBITDA margin excluding debit network fees was 33.2%. Operating profit was $54 million, compared with $83 million in the first quarter of 2008. Operating profit margin was 4.7%.
For the quarter, Financial Services revenue was $544 million, down 3%. Revenue excluding reimbursables was down 1%. Financial Services renewed 130 contracts in the quarter. EBITDA was $158 million, down 6%, and EBITDA margin excluding reimbursables was 42.5%. Operating profit was $76 million, compared with $90 million in the first quarter of 2008. Operating profit margin was 13.9%.
For the quarter, International generated revenue of $369 million, down 16%. Revenue on a constant currency basis, excluding acquisitions and divestitures, was up 1%. Transactions and point-of-sale locations each showed healthy growth at 10% and 9%, respectively. EBITDA was $73 million, down 9%, and EBITDA margin was 19.9%. On a constant currency basis, EBITDA was $91 million, up 13%, and EBITDA margin was 20.4%. Operating profit was $7 million, compared with $19 million in the first quarter of 2008. Operating profit margin was 1.8%.
Effective Jan. 1, 2009, First Data adopted a revised segment reporting structure. The company's segments include Retail and Alliance Services, Financial Services, International and Integrated Payment Systems. For applicable prior year and quarterly periods, the company has provided financials realigned to these segments in connection with our first quarter 2009 Securities and Exchange Commission Form 10-Q filing.
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