Total System Services Inc., or TSYS, is reporting net income of $63.1 million for the second quarter ended June 30, down 4% compared with $65.7 million for the same period last year. Electronic-payment processing services revenue for the second quarter decreased 1% to $242.4 million from $244.8 million last year. Merchant-acquiring services revenue increased 2% to $65.6 million from $64.3 million. TSYS attributed the net-income decline to an after-tax cost of $800,000 related to the company's spin-off by former parent Synovus Financial Corp. TSYS also attributed the net-income decline to a decrease of roughly $5.4 million in income caused by increased interest expense and reduced interest income. Total operating expenses rose 5.8%, to $385.5 million from $364.2 million. The slowing economy and turmoil in the financial markets has hampered the company's performance, Philip W. Tomlinson, chairman and CEO of TSYS, stated yesterday during a conference call with analysts. "Most of our major clients have earnings problems, and the anticipated card growth began to slow down in late May and has continued through June," he said. "We're now experiencing the backwash of what I would call economic headwinds that our clients have faced all year long."
Authoritative analysis and perspective for every segment of the payments industry
Authoritative analysis and perspective for every segment of the industry
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