First Data Corp. said Thursday that immigration issues in the United States affected otherwise strong second-quarter earnings and could continue to do so going forward.
Greenwood Village-based First Data Corp. owns Western Union, which relies heavily on migrant workers around the globe to transfer money through its network.
First Data reported a 10 percent jump in second-quarter revenues to $2.9 billion. Net income was $436 million, or 56 cents per share, in line with analyst estimates.
Western Union generated revenue of $1.1 billion in the second quarter, a 15 percent increase from the same quarter of 2005. Operating profits were $352 million, up 9 percent, a pace slower than previous quarters.
First Data expects to generate earnings of $2.35 to $2.42 a share this year. Immigration issues, however, could affect how strong those earnings are.
“If U.S. immigration issues continue to impact the Western Union business at the same rate in the second half of the year, we would expect to deliver full-year EPS (earnings per share) at the low end of the range,” the company said.
First Data has taken a strong pro-immigration position, backing it with a $10 million fund created in 2004.
Western Union expects to spin off from First Data in late September or early October. The two companies employ about 5,000 workers between them in the state.
First Data shares closed down 13 cents to $43.85 ahead of the earnings announcement.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
