Total System Services Inc.'s (TSS) second-quarter profit rose
8.1% as the company posted a double-digit revenue increase for
international services, offsetting a decline in revenue from North
American and merchant services.
The company, which makes technologies to support consumer
finance credit and debit cards for financial institutions, has
benefited from slightly improved consumer spending trends in recent
quarters.
In January, Total System 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 has said the business, rebranded as
TSYS Merchant Solutions, will help its diversification
strategy.
Total System posted a profit of $53.7 million, or 28 cents a
share, up from $49.7 million, or 25 cents a share, a year earlier.
Revenue grew 3.9% to $447.6 million.
Analysts polled by Thomson Reuters had most recently predicted a
profit of 27 cents a share on revenue of $438 million.
Revenue for North American services fell 1.2%, while
international services revenue rose 25%. Merchant services sales
fell 0.7%.
Shares were up 0.5% to $18.25 in after-hours trading. The stock
has gained 17% over the past 12 months through the close.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com