Fiserv First Quarter Income Climbs 45%

WI-based Fiserv reported first quarter processing and services revenues of $882.3 million, a 9% increase over 1Q/05. Net income for the quarter rose about 45% to $228 million. During the quarter, Fiserv signed a 12-year agreement to provide check processing and image archive services for Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp. Based on estimated volumes, the agreement will generate projected annual revenue of $460 million. Significant client renewals and other new relationships during the first quarter include DaimlerChrysler Services North America, HomeBanc Mortgage, and Baltimore County Savings Bank. For complete detail on Fiserv’s first quarter performance, visit CardData ([www.carddata.com][1]).

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

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SKYCARD MASTERCARD

Barclaycard and BSkyB have launched MasterCard’s first interactive TV credit card. The new “SkyCard MasterCard” has been fully integrated with the Sky box to enable users to shop through the box and receive rewards. The “SkyCard” is also the first to reposition the MasterCard branding and hologram, making the SkyCard unique in being the first fully portrait card design. Under the “SkyPoints” feature cardholders are rewarded with up to 3% of their spending on the card, with a minimum of 1%. The points can be redeemed for rewards such as the monthly Sky digital subscription fee, “Sky Box Office” pay per view movies and events, and “PremPlus” football games. Barclaycard and BSkyB are also offering a series of prize drawings for new cardholders including a 12 day expedition to Egypt accompanied by a National Geographic expert worth GBP 7,500. The new credit card has a 0% interest rate on purchases and balance transfers until January 2006 and a typical rate of 16.9% APR variable. The launch is being supported by a comprehensive marketing campaign involving a 3.5 million direct mail campaign, magazine and television advertising, including Sky’s active and text channels. BSkyB has more than seven million direct-to-home customers across the UK.

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Lipman’s Revenues Rise 69% in Q1

Lipman Electronic Engineering, a provider of electronic payment systems, posted first quarter revenues of $54.2 million, an increase of 69% over the first quarter of 2004. Net income for the quarter was $5.3 million, compared to $4.8 million for 1Q/04. Lipman says the increased revenues were due to the consolidation of Dione’s operations. In Europe, the quarter was highlighted by initial orders from customers in the Italian market. In Italy, Lipman began shipping its “NURIT 8320” terminals to EasyNolo, a member of Gruppo Banca Sella. Also, during the first quarter, Lipman began a pilot program to manufacture Dione’s products at facilities in Israel. For complete details on Lipman’s first quarter performance, visit CardData (www.carddata.com).

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Comms XL Sponsors Retail Solutions Award

Comms XL is sponsoring a key industry award at this year’s European Retail Solutions Awards. The “Supplier of the Year Award” is one of the most prestigious in the industry and Comms XL is the first vendor to sponsor this new award category. The awards, being presented at the Retail Solutions Show, will celebrate the best in retail technology applications from across European retailing. The event will be held Tuesday 7th June in the Hilton Birmingham Metropole. Comms XL is one of the UK’s leading developers and suppliers of credit card processing and authorization software.

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Restructuring and Payment Rates Impact MBNA’s Q1

As expected, MBNA posted a sharp decline in net income for the first quarter to $31.7 million as the issuer swallowed a pre-tax restructuring charge of $767.6 million. Without the huge charge for staff reductions, facilities closings, and contract terminations, net income would have been $514.1 million for 1Q/05. MBNA also acknowledged that some of its pricing policies may be backfiring as U.S. cardholders hit with higher interest rates have been making higher payments than normal. The nation’s third largest issuer says the unexpectedly high payment volumes have adversely impacted its yield on managed loans. Managed loans for 1Q/05 were down about 1% year-over-year to $116.6 billion. Domestic credit card loans declined 7.8% from one-year ago to $74.8 billion. First quarter gross charge volume was up 4.6%, compared to 1Q/04, to $49.3 billion. Managed charge-offs continued to improve year-over-year, declining to 4.48%, but increased from the prior quarter’s 4.43%. One-year ago managed charge-offs stood at 4.99%. Delinquency on managed loans increased slightly to 4.17%, compared to 4.13% in 4Q/04. For 1Q/04 delinquency stood at 4.27%. During the quarter, MBNA increased the number of affinity groups to more than 1,500 offering an American Express card. The issuer also began marketing the new AmEx-branded clear card to members of some of our college and university affinity groups and entered into a formal agreement to market AmEx-branded credit cards to customers in the United Kingdom. For complete details on MBNA’s first quarter results visit CardData ([www.carddata.com][1]).

MBNA TRACK RECORD
Profits Loans
1Q/04: $519.7 MM $117.6 B
2Q/04: $660.3 MM $118.2 B
3Q/04: $728.3 MM $117.8 B
4Q/04: $768.9 MM $121.6 B
1Q/05: $ 31.7 MM $116.6 B
Source: CardData (www.carddata.com)

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

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Oberthur’s First Quarter Revenues Rise 17%

Oberthur Card Systems reported that first quarter sales grew 17% to $154.4 million. During 1Q/05, the company delivered 43 million smart cards, compared to 34 million in the year ago quarter. However, the number of payment cards delivered was 19.6 million compared to 20.5 million for 1Q/04. Sales of payment cards decreased to $41.4 million, a 6.5% decline. Sales for magnetic stripe cards, scratch cards and memory cards increased 11.9% to $24.6 million. For complete details on Oberthur’s first quarter performance, visit CardData (www.carddata.com).

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HSBC Names a Chief Credit Officer for North America

HSBC – North America has appointed Bruce Fletcher as SVP and chief credit officer for retail credit. Fletcher will oversee and integrate retail credit risk management for all of the company’s North American entities. Previously, he was with Citigroup as managing director of retail risk. Fletcher earned his bachelor’s degree in business administration from the College of William and Mary. HSBC – North America is a financial services organization with more than $300 billion in assets, serving almost 60 million customers.

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Wincor Nixdorf Names BTG a Master Reseller

Paderborn-based Wincor Nixdorf has named Benchmark Technology Group as the master reseller of document printers for the U.S. and Canadian markets. Benchmark will be responsible for all certified warranty repairs, parts distribution, training and implementation of engineering changes. Wincor Nixdorf is global supplier of POS systems and ATMs. Benchmark Technology Group Provides branch technology solutions for financial services institutions.

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AIR MILES Program Drives ADS’ Q1 Profits Higher

Dallas-based Alliance Data Systems posted a 15% increase in net income to $37.2 million and a 20% gain in Q1 revenue to $375.9 million. ADS says contributing factors were the roll out of two major national “Air Miles Reward” programs with Rona and the Bank of MontrealWestJet Airlines, as well as the acquisition Epsilon Data Management and surprising strength in its private label business. Transaction Services revenue decreased 2% in the first quarter to $167.7 million, impacted by difficult private label credit sales comparisons versus prior year which resulted in lower statement-generated growth. Credit Services revenue increased 7% in the first quarter to $151.4 million driven by portfolio growth, credit losses, funding costs and operating leverage. Marketing Services revenue increased 71% in the first quarter to $137.4 million driven by firm pricing, a lack of “Air Miles” sponsor attrition. ADS increased its 2005 cash earnings per share estimate to $1.87-$1.90, versus the $1.81-$1.83 stated previously. For complete details on ADS’ first quarter performance, visit CardData ([www.carddata.com][1]).

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

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FuturSoft Oy Selects Rahaxi Processing Oy

Helsinki-based Rahaxi Processing Oy has entered into an agreement with FuturSoft Oy, a provider of information technology and software solutions for the automotive industry in Finland.
The agreement will allow Rahaxi access to new merchants. Futursoft
currently has a customer base of over 700 companies in Finland, Sweden
and Estonia. Rahaxi Processing OY currently processes in excess of 1,000,000 card payments per month for an established client base that comprises companies such as Finnair, Ikea, and Stockmann.

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Q Comm Readies a New CFO to Take Over in June

Q Comm has appointed Mark Robinson as its new CFO. Robinson has over 20 years of finance, operations, and general management experience in the software, hardware, manufacturing and service industries. He is the former CFO and COO of Clickguard Corporation and served as the CFO and Co-President of Bluecurve Inc. Q Comm International is a prepaid transaction processor that electronically distributes prepaid products from service providers to the point of sale.

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Metris’ Delinquency Rates Fall to Record Lows

Metris Companies (Direct Merchants Credit Card Bank) reported net income of $27.6 million for the first quarter, a 33.7% decline over the year ago quarter. However, net income was up sharply from the fourth quarter’s $700,000 profit. Metris says its two-cycle plus delinquency rate for its securitized balances was 8.3%, the lowest in almost four years, while the first-cycle ABS delinquency rate of 4.1% is the lowest in its history. The managed net charge-off rate was 14.5% for the first quarter, compared to 15.5% in the fourth quarter and 17.8% for the first quarter of 2004. New account originations for the first quarter were 163,000. Gross active accounts were 2.2 million and managed credit card loans were $6.2 billion as of March 31st. Total expenses were $108.2 million for the quarter, a $6.1 million decrease from 1Q/04. The decrease was primarily due to lower compensation, data processing services and communications, credit protection claims and occupancy expenses due to a reduction in gross active accounts. Partially offsetting this decrease was credit card account and other product solicitation and marketing expenses, which were $19.1 million during the first quarter of 2005, compared to $15.9 million for the quarter ended March 31, 2004. This increase of $3.2 million was due primarily to the increase in account marketing. For complete details on Metris’ first quarter results, visit CardData ([www.carddata.com][1])

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

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