DENVER-
Credit card processor First Data Corp., which agreed earlier this month to a $27 billion takeover, said Thursday its net income dropped 59 percent in the first quarter, reflecting the spinoff of Western Union.
The company reported earnings of $175.2 million, or 23 cents per share, from $430.1 million, or 55 cents per share, in the year-ago period.
First Data said the results included a decline of $206.9 million from discontinued operations. The company spun off Western Union in September.
Income from continuing operations was down 22 percent to $171.7 million, or 23 cents per share. Excluding a charge related to the wind-down of the official check and money order business, earnings were 24 cents per share.
Analysts, whose estimates typically exclude special items, expected profit of 23 cents per share, according to Thomson Financial.
Revenue was up 12 percent from the first quarter a year ago, to $1.84 billion from $1.64 billion last year, beating Wall Street’s expectations for $1.79 billion.
“We have enjoyed an excellent quarter and a great start to the year,” Chairman and Chief Executive Officer Ric Duques said. “Underlying these results were strong individual performances from each of our three main business segments (commercial services, financial institution services and First Data International).”
Revenue for commercial service and financial institution services each grew 9 percent, and First Data International revenues grew 39 percent, the company said.
First Data, based in the Denver suburb of Greenwood Village, offers electronic commerce and payment services. The company announced April 2 that it agreed to be bought for $34 per share by an affiliate of private equity firm Kohlberg Kravis Roberts & Co.
First Data shares fell 3 cents to close at $32.46 a share on the New York Stock Exchange before Thursday’s results were released. The shares gained 5 cents in after-hours trading.
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