Heartland Payment Systems Inc., which has been forging multiple partnerships in emerging payments markets, says its net revenue has risen to record levels.
Heartland's net income rose 9.6%, to $19.7 million, in the second quarter from a year earlier. Its revenue rose 6.1%, to $546.6 million. Its net revenue, which excludes interchange, dues, assessments and fees, rose 13.5% to a $149.7 million.
"Record earnings in the second quarter clearly demonstrate that our strategy to productively grow our sales organization, selectively enhance our core transaction processing capability and add complementary non-card products to our portfolio is generating double-digit growth in net revenue and operating income," says Robert Carr, chairman and CEO, in a July 31 press release.
Heartland has been expanding into the electronic and mobile payments space, partnering with i2c for several mobile features, including alerts; and SCVNGR's LevelUp to support mobile payments at the point of sale. To beef up security in these new areas, Heartland recently forged a relationship with Alaric to use its fraud prevention and detection product.
Heartland purchased Ovation Payroll on Dec. 29, 2012, and payroll revenue increased 107% in the second quarter from a year earlier. However, due to rising costs because of the December 2012 acquisition, general and administrative expenses rose 39% in the quarter.
"Heartland is ideally positioned to capitalize on the growth opportunities being created by the rapidly evolving payments market," Carr says. "To assure we can set the agenda for new payments technology and systems, we are developing new products, creating mutually beneficial partnerships, and making strategic investments."