[IMGCAP(1)]

Global Payments Inc., an Atlanta-based payment processor, reported yesterday a $106.8 million net loss for the third quarter ending February 28, a reversal from the company's $40.1 million net income for the 2008 third quarter. Revenue, however, saw double-digit percentage growth totaling $392.7 million in the quarter, a 26.4% increase from the $310.6 million in revenue for the same quarter a year ago. Global Payments cited a $147.7 million charge against the goodwill value of the company's money transfer business as a primary driver for the loss. Goodwill is a measure of the value of intangible assets, such as a brand reputation, of a company. In a press release, Paul R. Garcia, chairman and CEO, said overall growth came from the 2008 acquisition of a joint venture with HSBC Bank Plc to process transactions in the United Kingdom and transaction growth among Global Payment's U.S. independent sales organizations. By region, Global Payment's third-quarter 2009 North American merchant services revenue totaled $274.4 million, a 12.8% increase from the year-ago third-quarter revenue of $243.3 million. International revenue in the third quarter was $85.1 million compared with revenue of $33.4 million last year, a 154.8% increase. Global Payments' money transfer business had revenue of $33.1 million in the 2009 third quarter, a 2.4% decrease from the $33.9 million in revenue for the year-ago quarter. The processor's fiscal year ends May 31.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry