Significant improvement in two key business metrics–fleet-fueling volume and number of vehicles serviced–combined with stronger cobrand MasterCard purchase volume helped boost second-quarter revenue at Wright Express Corp.
The South Portland, Maine-based fleet card issuer reported $91.4 million in total revenue for the quarter ended June 30, up 17.3% from $77.9 million during the same period last year. Net income was $30 million, down 68% from $93 million.
New customers, including the state of Florida, the New York City Metropolitan Transportation Authority and the U.S. Department of the Treasury, added 35,000 vehicles during the quarter to its portfolio of 4.6 million vehicles serviced, according to Wright Express.
The company’s new diversified businesses, led by its MasterCard program, contributed more than $20 million, or 22%, of its total revenue for the quarter. “Our MasterCard product continues to drive growth,” CEO Mike Dubyak told analysts during a July 27 conference call.
MasterCard payment-processing revenue totaled $11.1 million, up 29.1% from $8.6 million in last year’s second quarter. Holders of the Wright Express MasterCard spent $1.04 billion, up 34.9% from $771 million, Dubyak noted.
“Most of the growth in purchase volume is continuing to come from our single-use account product,” Dubyak said. “We envision the purchasing card as a way to add value for our small and medium-sized business customers by helping them reduce their operating cost while at the same time creating a cross-selling opportunity for us in our core fleet business. And it’s serving both purposes very well.”
Total fuel transactions for the quarter remained level from a year earlier at 66.3 million. Payment-processing transactions increased by 2.5%, to 52.9 million, up from 51.6 million. Fleet payment-processing revenue grew by 22.5%, to $54.5 million from $44.5 million. The average fuel price rose by 23.2%, to $2.87 per gallon from $2.33 per gallon.
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