DENVER, Colo. - First Data Corp. reported a 9 percent profit increase for the third quarter of the year, up from $1.65 billion in 3Q 2005 to $1.8 billion. The company's net income dropped 34 percent, from $517 billion, 67 cents per share, to $342 billion, 45 cents per share.
The results reflect the spin-off of Western Union and do not include Western Union outcomes, the company said. (Read also, Western Union reports 12% revenue increase.)
First Data also announced plans to repurchase $700 million of its shares by the end of 2007.
"We are building great momentum and are now 100 percent focused on the needs of our financial institution and merchant clients," said Ric Duques, First Data chairman and chief executive.
Other segments
For the quarter, Commercial Services saw a 10 percent revenue increase, up from $923 million in 3Q 'O5 to $1 billion.
Financial Intitution Services' revenue decreased 4 percent, going from $474 million to $455 million. The company said the decrease resulted from a contract termination.
First Data International saw a 45 percent revenue increase, up from $229 million in '05 to $332 million. The company attributed the growth to new-business-development investments, infrastructure and platform consolidation, and higher incentive-compensation expenses.
Integrated Payment Systems saw a 48 percent decrease, going from 50 million in 3Q '05 to $26 million.
