Moms Favor Reward Cards But Frustrated

A new survey has found that 41% of moms have rewards credit cards, but 53% of this group have not redeemed their points. The “All About Rewards” survey of moms nationwide, conducted by Harris Interactive and commissioned by the “Disney Rewards VISA” from Chase, also found that 41% of moms say they are dissatisfied with their rewards card program and 34% say their credit card does not offer the types of rewards their family wants. About 32% were frustrated by the restrictions their card carries. Nearly one-third were unsure of the rewards their credit card offers.

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Cash Systems’ Q2 Revenue Up 51%

Las Vegas-based Cash Systems reported that revenue for the second quarter hit $24.1 million, an increase of 51% year-over-year. The Company posted a $438,000 loss from operations in the second quarter compared to a loss of $2.7 million from operations in the second quarter of 2005. During the quarter Cash Systems signed multi-year contract renewals with Cannery Casino & Hotel and Rampart Casino, both located in Las Vegas, Nevada as well as Chickasaw Nation’s newest casino, Riverwind Casino. The Company says revenue is now expected to grow to approximately $90 million in fiscal 2006, up from prior guidance of $82 million. Also, Cash Systems expects a return to profitability in the fourth quarter. For complete details on Cash Systems’ latest performance, visit CardData ([www.carddata.com][1])

[1]: http://www.carddata.com

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FirstCity Eyes $4B in Debt Portfolios

TX-based debt buyer and collector, FirstCity Financial, reported second quarter earnings of $1.3 million compared to $2.7 million one-year ago. The Company purchased $25.2 million in portfolio assets during the second quarter and invested equity in these portfolios of $19 million. These purchases consisted of six portfolios — five in the USA and one in Europe. The Company is currently evaluating 35 different transactions representing over $4 billion in face value of assets. For complete details on FirstCity Financial’s latest performance, visit CardData ([www.carddata.com][1])

[1]: http://www.carddata.com

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Target’s Card Profit Rises 53% Y/Y

Target reported that its pre-tax credit card profits for the quarter ending July 30th increased 53% over the year-ago quarter. Credit card outstandings for the quarter increased 11% year-on-year, exceeding $6.0 billion. Target’s second calendar quarter pre-tax credit card profits were $168 million, compared to $162 million in the prior quarter and $110 million one-year ago. Target reported that its total credit card receivables, which include its VISA and “Guest” cards, were $6.041 billion as of July 30th, compared to $5.421 billion one-year ago. Delinquency (90 days+) for 2Q/06 increased to 3.4%, compared to 3.0% in the prior quarter and the one-year ago quarter. Charge-offs were 4.6% for 2Q/06 compared to 4.3% in the prior quarter and 7.2% one-year ago. Target’s credit card unit had revenues of $273 million in 2Q/06, a 25% increase over 2Q/05. For complete details on Target’s latest performance, visit CardData ([www.carddata.com][1]).

TARGET CARD LOAN HISTORICAL
(Excludes Mervyn’s & Marshall Field’s)
2Q/05: $5.421 billion
3Q/05: $5.544 billion
4Q/05: $6.177 billion
1Q/06: $5.844 billion
2Q/06: $6.041 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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ECHO Revenues Soar 39% in 2Q/06

Camarillio, CA-based Electronic Clearing House reported that second quarter revenue rose 39% to $19.9 million. Bankcard and transaction processing revenue grew 43% to $15.1 million, while bankcard processing volume increased 57.5% to $472.1 million. ECHO also reported that ACH transactions processed increased 18.5% to 9.3 million transactions. Processing and transaction expense increased 46.9% in the third quarter of fiscal 2006 to $13.3 million, up from $9.1 million in the comparable 2005 quarter. ECHO says the key to the quarter’s performance was solid organic growth from its existing merchants, continued performance from its historic sales channels and careful control over its operating costs. During the quarter ECHO received a “Notice of Allowance” for a new patent covering Internet-based check cashing and clearing. The Company also settled litigation over LML’s three electronic check conversion patents. Additionally, ECHO signed a three-year agreement extending its long-standing partnership with EZCheck Check Services. For complete details on ECHO’s latest performance, visit CardData ([www.carddata.com][1]). (CF Library 4/3/06; 4/13/06; 4/18/06)

ECHO REVENUE HISTORICAL
2Q/05: $14.3 million
3Q/05: $15.2 million
4Q/05: $16.9 million
1Q/06: $19.2 million
2Q/06: $19.9 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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