GREENWOOD VILLAGE, Colo.—Credit card transaction processor First Data Corp. said its second-quarter net income dropped 51 percent as a result of last year’s spinoff of The Western Union Co., although revenue rose 16 percent.
For the quarter ending June 30, First Data reported net income of $229 million, or 30 cents a share, compared with net income of $462.6 million in the second quarter of 2006, or 60 cents a share, which included Western Union’s operations.
The second-quarter earnings from continuing operations were equal to 30 cents a share, First Data said.
Revenue rose 16 percent to $2 billion compared with $1.7 billion in the previous second quarter.
The 2006 quarter reflected special items equal to 7 cents a share that related to an accounting restatement.
Analysts surveyed by Thomson Financial had forecast revenue of $1.9 billion.
The company spun off Western Union in September.
First Data Chief Executive Officer Ric Duques said he saw momentum across the business.
The results were released as the electronic payment processing company is in the process of being acquired by affiliates of Kohlberg Kravis Roberts & Co. in a deal valued at $26 billion. The transaction is expected close by the end of the third quarter.
First Data delivered the report after the market closed Thursday. Its stock dropped 8 cents to $32.33 a share. In the past year, shares have traded between $21.93 a share and $45.50 a share.
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