Total System Services Inc.'s (TSS) first-quarter profit edged
down 4.9% as its main North American segment continued to lag
behind faster-growing international and merchant services
segments.
Revenue grew slightly faster than forecast.
Total Systems, which makes technologies to support consumer
finance credit and debit cards for financial institutions, has
benefited from slightly improved consumer spending trends of late.
A Credit Suisse analysis said momentum continues to build for the
company to show a recovery in the second half as new portfolios
come online.
The company in January bought the remaining minority interest in
First National Merchant Solutions LLC, a joint-venture direct
merchant acquirer and transaction processor with First National
Bank of Omaha. Total System said the business, rebranded TSYS
Merchant Solutions, will help it pursue its diversification
strategy.
Total System posted a first-quarter profit of $48.8 million, or
25 cents a share, down from $51.3 million, or 26 cents a share, a
year earlier. Revenue grew 3.9%, to $429.4 million.
Analysts polled by Thomson Reuters expected a profit of 25 cents
on revenue of $423 million.
Revenue for North American services declined 9.3%, to $230.6
million, while international services revenue rose 14%, to $90.7
million, and merchant services sales surged 33%, to $115.8
million.
Shares edged up 0.2%, to $19.10 in after-hours trading. The
stock has gained 15% over the past 12 months through the close.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com