Showing posts with label First Data. Show all posts
Showing posts with label First Data. Show all posts

Cold Stone Creamery and First Data Debut eGifting Solution for Ice Cream Lovers

New Facebook Application Allows Consumers to Send Real Treats to Friends & Family

ATLANTA & SCOTTSDALE, Ariz.--(BUSINESS WIRE)--First Data Corporation, a global leader in electronic commerce and payment processing, and Cold Stone Creamery, an innovative super-premium ice cream brand, have teamed up to offer a new gifting application through Facebook. Starting today, loyal Cold Stone fans can now quickly and easily send a tangible “item-level” gift (e.g. ice cream Creations, shakes) to a friend or loved one’s Facebook account or e-mail address.
“Thanks to social networking sites, texting and the growing abundance of web-enabled mobile devices, the way people interact as well as give and receive gifts is changing”
Cold Stone Creamery, with more than 1,300 U.S. locations, is the first merchant to launch a gifting program using the First DataSM eGift SocialSMsolution. Unlike other solutions in the marketplace, Cold Stone customers benefit from the convenience of being able to gift multiple small items to one or more recipients with a single transaction.
”We’re making it easier for people to share a Cold Stone moment, even if time or distance prevents them from being together. Now you don’t have to wait for special occasions to share ice cream; you can send Cold Stone gifts instantly, any day, just because,” said Daniel Beem, president of Cold Stone Creamery. “We’re delighted to know that we’ll be part of more of life’s little moments, from ‘get well soon’ notes and rewards for a job well done to ‘I miss you’ wall posts.”
Inside Facebook has estimated that consumers spent $10 million on virtual goods through applications on the Facebook platform in 2009. The eGift Social solution takes this trend to the next level by moving purchased virtual gifts into the physical world.
“Thanks to social networking sites, texting and the growing abundance of web-enabled mobile devices, the way people interact as well as give and receive gifts is changing,” said Dom Morea, First Data division manager of Mobile Commerce Solutions. “eGift Social lets consumers show appreciation for friends and family by giving affordable yet meaningful gifts in real time. We’re thrilled to partner with Cold Stone and introduce this innovative, new eGifting technology to their customers.”
How eGift Social Works
Consumers access the First Data eGift Social application through Cold Stone’s Facebook page or website and select one or multiple friends to send gifts to; either by adding them from Facebook or entering their e-mail address. The sender selects which product they would like their friend to receive, adds a personal message and proceeds through the secure checkout process.
The recipient receives a Facebook message, e-mail or both, with an alert that they have received a gift, the account number and redemption instructions. Visiting any participating Cold Stone location, the recipient redeems the eGift item in a flavor of their choice by using the account number at the point of sale.
To join the eGift Social conversation, please follow:
About Cold Stone Creamery
Cold Stone Creamery delivers The Ultimate Ice Cream Experience® through a community of franchisees who are passionate about ice cream. The secret recipe for smooth and creamy ice cream is handcrafted fresh daily in each store, and then customized by combining a variety of mix-ins on a frozen granite stone. Headquartered in Scottsdale, Ariz., Cold Stone Creamery is a subsidiary of Kahala, one of the fastest growing franchising companies in the world, with a portfolio of 12 quick-service restaurant brands. Cold Stone Creamery operates more than 1,500 locations in 16 countries.
About First Data
First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the aggregate data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.

Contacts

Elizabeth Grice, First Data

303-967-8526

elizabeth.grice@firstdata.com

or

Veronica Graves, Kahala

480-362-4946

vgraves@kahalamgmt.com
Permalink: http://www.businesswire.com/news/home/20100707005445/en/Cold-Stone-Creamery-Data-Debut-eGifting-Solution


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First Data to Release First Quarter Results



Image representing First Data Corp as depicted...

First Data to Release First Quarter 2010 Financial Results

CFO Pat Shannon Will Host Conference Call
ATLANTA--(BUSINESS WIRE)--On Friday, May 14, First Data will release its first quarter 2010 financial results. The release will be available at www.firstdata.com.
The company will host a conference call and webcast on Friday, May 14, at 8 a.m. EDT to review first quarter 2010 financial results. Pat Shannon, chief financial officer of First Data, will lead the call.
To listen to the call, dial 877-303-6502 (U.S.) or +1-224-357-2195 (outside the U.S.) 10 minutes prior to the start of the call. The call also will be webcast on the “Investor Relations” section of the First Data Web site, http://ir.firstdatacorp.com/events.cfm. Please click on the webcast link at least 15 minutes prior to the call. A slide presentation to accompany the call will be included in the webcast and also will be available under the “Investor Relations” section of the Web site.
A replay of the call will be available through May 28, 2010, at 800-642-1687 (U.S.) or +1-706-645-9291 (outside the U.S.), replay pass code 67474902, and via webcast athttp://ir.firstdatacorp.com/events.cfm.
About First Data
First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.

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Posted by John B. Frank Thursday, April 22, 2010 0 comments

First Data to Release First Quarter Results



Image representing First Data Corp as depicted...

First Data to Release First Quarter 2010 Financial Results

CFO Pat Shannon Will Host Conference Call
ATLANTA--(BUSINESS WIRE)--On Friday, May 14, First Data will release its first quarter 2010 financial results. The release will be available at www.firstdata.com.
The company will host a conference call and webcast on Friday, May 14, at 8 a.m. EDT to review first quarter 2010 financial results. Pat Shannon, chief financial officer of First Data, will lead the call.
To listen to the call, dial 877-303-6502 (U.S.) or +1-224-357-2195 (outside the U.S.) 10 minutes prior to the start of the call. The call also will be webcast on the “Investor Relations” section of the First Data Web site, http://ir.firstdatacorp.com/events.cfm. Please click on the webcast link at least 15 minutes prior to the call. A slide presentation to accompany the call will be included in the webcast and also will be available under the “Investor Relations” section of the Web site.
A replay of the call will be available through May 28, 2010, at 800-642-1687 (U.S.) or +1-706-645-9291 (outside the U.S.), replay pass code 67474902, and via webcast athttp://ir.firstdatacorp.com/events.cfm.
About First Data
First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.

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Roam Data Mobile Service Primed to Ring in the Customers

35 Organizations Reselling Roam Data Mobile Service

PaymentsSource  |  Monday, April 19, 2010



Interest in Roam Data Inc.'s mobile-payment service appears to be high among independent sales organizations. Most of Roam Data's 35 resellers are ISOs, says Will Graylin, founder and CEO of Boston-based Roam Data



Roam Data also has agreements with Atlanta-based First Data Corp., Dallas-based Chase Paymentech LLC and Palm Desert (Calif.) National Bank, among others. First Data and Chase Paymentech resell Roam Data's services under their brand names, Graylin tells PaymentsSource. Graylin would not say how many merchants are using the service.



POS-terminal maker Ingenico SA, a minority investor in Roam Data, demonstrated the RoamPlayer technology at last week's Electronic Transactions Association Annual Meeting and Expo in Las Vegas.



During the conference, Ingenico representatives displayed a card reader, developed by HomeATM ePayment Solutions, that plugs into the audio jack of many smartphones, enabling card-present transactions.





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Posted by John B. Frank Monday, April 19, 2010 0 comments

Roam Data Mobile Service Primed to Ring in the Customers

35 Organizations Reselling Roam Data Mobile Service

PaymentsSource  |  Monday, April 19, 2010



Interest in Roam Data Inc.'s mobile-payment service appears to be high among independent sales organizations. Most of Roam Data's 35 resellers are ISOs, says Will Graylin, founder and CEO of Boston-based Roam Data



Roam Data also has agreements with Atlanta-based First Data Corp., Dallas-based Chase Paymentech LLC and Palm Desert (Calif.) National Bank, among others. First Data and Chase Paymentech resell Roam Data's services under their brand names, Graylin tells PaymentsSource. Graylin would not say how many merchants are using the service.



POS-terminal maker Ingenico SA, a minority investor in Roam Data, demonstrated the RoamPlayer technology at last week's Electronic Transactions Association Annual Meeting and Expo in Las Vegas.



During the conference, Ingenico representatives displayed a card reader, developed by HomeATM ePayment Solutions, that plugs into the audio jack of many smartphones, enabling card-present transactions.





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http://www.hypercom.com

Hypercom and First Data Team to Step Up Payment Industry’s Attack on Card Data Fraud

  • First Data Approves Hypercom as an Encrypting Service Organization for Remote Key Injection

  • Hypercom and TASQ to Roll-out HyperSafe® Remote Key System

  • Industry Leaders to Boost Security for Merchants with TransArmor™ and HyperSafe

SCOTTSDALE, Ariz., & ATLANTA--(BUSINESS WIRE)--High security electronic payment and digital transactions solutions provider Hypercom Corporation (NYSE: HYC) and First Data Corporation, a global leader in electronic commerce and payment processing, today announced that First Data has approved Hypercom as an encrypting service organization for remote key injection and that Hypercom’s HyperSafe® Remote Key System will be available through First Data’s TASQ Technology. The companies also announced that Hypercom is teaming with First Data to implement the First Data® TransArmorSM solution as a significant advance in the payment industry’s attack on card data fraud.
“Add to that the fast approaching requirements for 3DES, and the ability to expedite merchant migration to 3DES and eliminate cost is essential.”
“Implementing effective data security requires sophisticated and tailored technologies that make it easier for our merchant customers to do business. The time, convenience, cost and security benefits of Hypercom’s remote key injection system are clear, and the additional security offered by HyperSafe complements TransArmor’s objectives to deliver much needed security to our business partners and respective merchants globally,” said Ed Labry, president of Retail and Alliance Services, First Data.
Industry’s Leading Standards-Based Remote Key Injection
Hypercom’s Remote Key System (HRKS) is the industry’s leading standards-based remote key injection product that allows retailers to quickly and securely initiate on-site, in-store payment terminal key injection at the point of sale. Available through First Data’s TASQ Technology, the system offers a fast and highly secure alternative to the industry’s traditional secure room key injection process.
HRKS eliminates the need for off-site secure room key injection by incorporating PKI (Public Key Infrastructure) to securely distribute symmetric 3DES keys. HRKS meets ANSI x9.24 and Visa PIN Security Guidelines for remote key management, and is FIPS 140-2 Level 3 and X509 compliant.
“Merchants in today’s demanding economy need the fastest, most proven and flexible secure key injection software to streamline their operations and boost the bottom-line. No one wants to waste the time and money shipping their newest terminals off-site, nor should they be expected to do that,” said Philippe Tartavull, chief executive officer and president, Hypercom Corporation. “Add to that the fast approaching requirements for 3DES, and the ability to expedite merchant migration to 3DES and eliminate cost is essential.”
Hypercom’s HyperSafe Remote Key System was awarded the globally prestigious Sesame Award at Cartes 2009. The Sesame Awards represent an unchallenged seal of approval in innovation and are regarded as the global standard for card manufacturers and related industries.
Partnership to Fight Card Data Fraud
In another key step in the alliance being formulated by the two payment security industry leaders, Hypercom intends to market the First Data TransArmor solution and First Data intends to incorporate Hypercom’s HyperSafe secure suite of security products as an added layer of protection for merchants.
The TransArmor solution addresses the root cause of merchant data security issues by removing payment card data from the merchant environment as part of processing the transaction, significantly reducing risk and the scope of PCI compliance efforts. The solution leverages the RSA SafeProxy™ architecture, a powerful combination of asymmetric encryption, tokenization and key management engineered to provide the benefit of end-to-end protection and eliminate on-site cardholder data storage for merchants. Unique features of the token make it possible for merchants to continue to handle key business functions such as returns, recurring billing, loyalty programs and other analysis, without enabling card data to be used for fraudulent transactions.
Hypercom’s HyperSafe suite of security products protects cardholder data during operation and maintenance, defending terminals from rogue applications and malware, protects the terminal management system from communicating with fraudulent terminals and provides the industry’s only remote key management system. Key benefits for banks, processors and large retailers: protects their investment in the point of sale estate, reduces the potential for fraudulent use of terminals and ensures the secure transport of cryptographic keys. HyperSafe is one of five key components Hypercom delivers to protect payment card data.
“We are making available the smartest array of security approaches providing choices for businesses of all types to fortify their defenses and protect cardholder data against current and future threats. The addition of the First Data TransArmor solution to our arsenal of crime-fighting technologies together with our HyperSafe suite of security products allows us to deliver the industry’s most comprehensive selection of security solutions,” said Mr. Tartavull.
Additional resources:
About First Data
First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the aggregate data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.
About Hypercom (www.hypercom.com)
Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products, software solutions and services. The Company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, self-service, and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Hypercom is a founding member of the Secure POS Vendor Alliance (SPVA) and is the second largest provider of electronic payment solutions and services in Western Europe and third largest provider globally.
Hypercom and HyperSafe are registered trademarks of Hypercom Corporation. The First Data and TransArmor trademarks and service marks are owned by First Data Corporation and are either registered or used in the United States and/or in other countries. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners.

Contacts

Hypercom Corporation

Pete Schuddekopf, 480-642-5383

pschuddekopf@hypercom.com

or

First Data

Elizabeth Grice, 303-967-8526

elizabeth.grice@firstdata.com
Permalink: http://www.businesswire.com/news/home/20100412005154/en/Hypercom-Data-Team-Step-Payment-Industry%E2%80%99s-Attack


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Posted by John B. Frank Monday, April 12, 2010 0 comments



http://www.hypercom.com

Hypercom and First Data Team to Step Up Payment Industry’s Attack on Card Data Fraud

  • First Data Approves Hypercom as an Encrypting Service Organization for Remote Key Injection

  • Hypercom and TASQ to Roll-out HyperSafe® Remote Key System

  • Industry Leaders to Boost Security for Merchants with TransArmor™ and HyperSafe

SCOTTSDALE, Ariz., & ATLANTA--(BUSINESS WIRE)--High security electronic payment and digital transactions solutions provider Hypercom Corporation (NYSE: HYC) and First Data Corporation, a global leader in electronic commerce and payment processing, today announced that First Data has approved Hypercom as an encrypting service organization for remote key injection and that Hypercom’s HyperSafe® Remote Key System will be available through First Data’s TASQ Technology. The companies also announced that Hypercom is teaming with First Data to implement the First Data® TransArmorSM solution as a significant advance in the payment industry’s attack on card data fraud.
“Add to that the fast approaching requirements for 3DES, and the ability to expedite merchant migration to 3DES and eliminate cost is essential.”
“Implementing effective data security requires sophisticated and tailored technologies that make it easier for our merchant customers to do business. The time, convenience, cost and security benefits of Hypercom’s remote key injection system are clear, and the additional security offered by HyperSafe complements TransArmor’s objectives to deliver much needed security to our business partners and respective merchants globally,” said Ed Labry, president of Retail and Alliance Services, First Data.
Industry’s Leading Standards-Based Remote Key Injection
Hypercom’s Remote Key System (HRKS) is the industry’s leading standards-based remote key injection product that allows retailers to quickly and securely initiate on-site, in-store payment terminal key injection at the point of sale. Available through First Data’s TASQ Technology, the system offers a fast and highly secure alternative to the industry’s traditional secure room key injection process.
HRKS eliminates the need for off-site secure room key injection by incorporating PKI (Public Key Infrastructure) to securely distribute symmetric 3DES keys. HRKS meets ANSI x9.24 and Visa PIN Security Guidelines for remote key management, and is FIPS 140-2 Level 3 and X509 compliant.
“Merchants in today’s demanding economy need the fastest, most proven and flexible secure key injection software to streamline their operations and boost the bottom-line. No one wants to waste the time and money shipping their newest terminals off-site, nor should they be expected to do that,” said Philippe Tartavull, chief executive officer and president, Hypercom Corporation. “Add to that the fast approaching requirements for 3DES, and the ability to expedite merchant migration to 3DES and eliminate cost is essential.”
Hypercom’s HyperSafe Remote Key System was awarded the globally prestigious Sesame Award at Cartes 2009. The Sesame Awards represent an unchallenged seal of approval in innovation and are regarded as the global standard for card manufacturers and related industries.
Partnership to Fight Card Data Fraud
In another key step in the alliance being formulated by the two payment security industry leaders, Hypercom intends to market the First Data TransArmor solution and First Data intends to incorporate Hypercom’s HyperSafe secure suite of security products as an added layer of protection for merchants.
The TransArmor solution addresses the root cause of merchant data security issues by removing payment card data from the merchant environment as part of processing the transaction, significantly reducing risk and the scope of PCI compliance efforts. The solution leverages the RSA SafeProxy™ architecture, a powerful combination of asymmetric encryption, tokenization and key management engineered to provide the benefit of end-to-end protection and eliminate on-site cardholder data storage for merchants. Unique features of the token make it possible for merchants to continue to handle key business functions such as returns, recurring billing, loyalty programs and other analysis, without enabling card data to be used for fraudulent transactions.
Hypercom’s HyperSafe suite of security products protects cardholder data during operation and maintenance, defending terminals from rogue applications and malware, protects the terminal management system from communicating with fraudulent terminals and provides the industry’s only remote key management system. Key benefits for banks, processors and large retailers: protects their investment in the point of sale estate, reduces the potential for fraudulent use of terminals and ensures the secure transport of cryptographic keys. HyperSafe is one of five key components Hypercom delivers to protect payment card data.
“We are making available the smartest array of security approaches providing choices for businesses of all types to fortify their defenses and protect cardholder data against current and future threats. The addition of the First Data TransArmor solution to our arsenal of crime-fighting technologies together with our HyperSafe suite of security products allows us to deliver the industry’s most comprehensive selection of security solutions,” said Mr. Tartavull.
Additional resources:
About First Data
First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the aggregate data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.
About Hypercom (www.hypercom.com)
Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products, software solutions and services. The Company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, self-service, and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Hypercom is a founding member of the Secure POS Vendor Alliance (SPVA) and is the second largest provider of electronic payment solutions and services in Western Europe and third largest provider globally.
Hypercom and HyperSafe are registered trademarks of Hypercom Corporation. The First Data and TransArmor trademarks and service marks are owned by First Data Corporation and are either registered or used in the United States and/or in other countries. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners.

Contacts

Hypercom Corporation

Pete Schuddekopf, 480-642-5383

pschuddekopf@hypercom.com

or

First Data

Elizabeth Grice, 303-967-8526

elizabeth.grice@firstdata.com
Permalink: http://www.businesswire.com/news/home/20100412005154/en/Hypercom-Data-Team-Step-Payment-Industry%E2%80%99s-Attack


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First Data Reports Fourth Quarter 2009 Revenue of $2.6 Billion Full-Year 2009 Revenue of $9.3 Billion

Image representing First Data Corp as depicted...
  • Michael Capellas Joins KKR as Senior Advisor Focusing on Technology

  • First Data Names Joe Forehand as Chairman and Interim CEO

  • Renewed and Extended Sovereign Bank Merchant Acquiring Agreement

  • Renewed Agreements with 157 Financial Institutions

ATLANTA--(BUSINESS WIRE)--First Data Corp. today reported its financial results for the fourth quarter and full year ended Dec. 31, 2009. Consolidated revenue for the quarter was up 12% to $2.6 billion. Consolidated revenue growth was primarily driven by the formation of the Bank of America Merchant Services alliance, which substantially extended First Data’s leadership in merchant acquiring. Adjusted Revenue increased 1% for the quarter due mainly to growth in International Segment Revenue helped by a weaker U.S. dollar.



For the fourth quarter, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $530 million compared to $645 million for the fourth quarter of 2008. Several items unfavorably affected Adjusted EBITDA including; higher credit losses and warranty expense of $26 million, the timing of incentive compensation accruals which increased quarterly expenses by $29 million, a $9 million impact from lost business due to Washington Mutual’s acquisition by J.P. Morgan Chase, and lower royalty revenues of $6 million. For the quarter, the net loss attributable to First Data was $369 million which includes after-tax interest expense of $281 million.



For the full year, consolidated revenue was up 6% to $9.3 billion. Full-year Adjusted Revenue declined 7%. Adjusted Revenue declined primarily due to lower revenue in the Retail and Alliance Services segment and the stronger U.S. dollar. For 2009, Adjusted EBITDA was $2.1 billion compared to $2.6 billion for 2008. Adjusted EBITDA was unfavorably impacted by the weaker economy, a stronger U.S. dollar and lower royalty revenues. The full-year net loss attributable to First Data was $1.1 billion, which includes after-tax interest expense of $1.1 billion.



“In 2009 First Data improved its solid competitive position in the U.S. and around the globe,” said Michael Capellas, chairman and CEO. “We remain focused on leveraging our strengths in distribution and product innovation as we emerge from a challenging 2009 economic environment.”



Segment Results



Retail and Alliance Services



Retail and Alliance Services reported Segment Revenue of $820 million, which was unchanged compared to the fourth quarter of 2008. Favorable drivers of Segment Revenue included strong transaction growth, the addition of 15 independent sales organizations, nine referral partners and one revenue share agreement. This growth was offset by a decline in average ticket sizes and continued economic weakness affecting consumer spending. Segment EBITDA was $298 million, compared to $366 million for the fourth quarter of 2008. Segment EBITDA declined due to changes in revenue mix, increased merchant credit losses, additional check warranty expense and an increase in product development expense. Margin was 36.4%.



Full-year Segment Revenue was $3.1 billion, down 7%. Favorable drivers of Segment Revenue included 5% merchant transaction growth and the significant expansion of merchant distribution channels through alliances, revenue share agreements and independent sales organizations. This growth was more than offset by declining average tickets, continued economic weakness affecting consumer spending and lower interest income on deposits. For 2009, Segment EBITDA was $1.2 billion, compared to $1.4 billion for 2008. Segment EBITDA declined mainly due to lower revenue. In addition Retail and Alliance Services experienced higher credit losses from merchant failures. Margin was 39.0%.



Financial Services



Financial Services reported Segment Revenue of $353 million for the fourth quarter, down 7%. Growth from new business was more than offset by the previously disclosed loss of Washington Mutual as well as price compression on certain renewals. Segment EBITDA was $148 million, compared to $196 million for the fourth quarter of 2008. Segment EBITDA declined due to lower revenue and an increase in technology costs partially related to compliance with new regulations. Margin was 41.9%.



Full-year Segment Revenue was $1.4 billion, down 5%. Growth from new business was more than offset by lost business, primarily the loss of Washington Mutual, and price compression on certain renewals. For 2009, Segment EBITDA was $645 million, compared to $753 million for 2008. Segment EBITDA declined due to lower revenue and an increase in technology costs. Margin was 44.7%.



International



International reported Segment Revenue of $452 million for the fourth quarter, up 12%. Segment Revenue on a constant currency basis was up 2%, due in part to increased license sales and revenue growth in the Asia Pacific region. Segment EBITDA was $122 million, compared to $109 million for the fourth quarter of 2008. Margin was 27.1%. On a constant currency basis, Segment EBITDA was $112 million, up 3% and margin was 27.2%. Constant currency Segment EBITDA grew primarily due to an increase in license sales and cost reduction initiatives.



Full-year International Segment Revenue was $1.6 billion, down 7%. Segment Revenue on a constant currency basis was up 1%. For 2009, Segment EBITDA was $399 million, compared to $433 million for 2008. Margin was 25.4%. Segment EBITDA was unfavorably impacted by the stronger U.S. dollar. On a constant currency basis, Segment EBITDA was $446 million, up 3% and margin was 26.0%. Constant currency Segment EBITDA increased primarily due to cost reduction initiatives.



Significant Events



Senior Management Changes



First Data today announced the appointment of board member Joe Forehand, as chairman and interim CEO effective March 31, 2010. Forehand succeeds Michael Capellas, who after serving three years with the company has accepted a new role as a senior advisor to Kohlberg Kravis Roberts & Co. focusing on technology.



Forehand has been a member of First Data’s board of directors since September 2009. Mr. Forehand retired as chairman of the board of directors of Accenture Ltd in 2006. In his more than 30 years with Accenture, Forehand served as the CEO from 1999-2004, prior to that, as chief executive of the Communications and High Technology Operating Group, and as chairman of the board of directors from 2001-2006. Since Sept. 2007, Forehand has been a member of the Portfolio Management Committee for Kohlberg Kravis Roberts & Co.



Sovereign Merchant Services Renewal

On Dec. 3, 2009, First Data announced that Sovereign Bank, a wholly owned subsidiary of Banco Santander, S.A., had agreed to extend their existing merchant services agreement. Sovereign and First Data began their cooperation to offer merchant services programs in 2001.



Globalization of First Data Business Lines



In order to increase operating efficiencies and accelerate product commercialization, the International business will now be aligned with the company's two global lines of business: Financial Services, and Retail and Alliance Services. The company does not currently intend to revise its segment reporting structure.



Non-GAAP Measures

In certain circumstances, results have been presented that are non-GAAP measures and should be viewed in addition to, and not in lieu of, the company's reported results. Reconciliations to comparable GAAP (generally accepted accounting principles) measures are available in the accompanying schedules and in the "Investor Relations" section of the company's Web site at www.firstdata.com.

 

Investor Conference Call

The company will host a conference call and webcast on Thursday, March 11, at 8 a.m. EST to review fourth quarter and full year 2009 financial results. Michael Capellas, chairman and CEO of First Data, will lead the call. Also participating will be Pat Shannon, chief financial officer, and Silvio Tavares, senior vice president, investor relations.



To listen to the call, dial 888-378-4350 (U.S.) or +1-719-457-2734 (outside the U.S.) 10 minutes prior to the start of the call. The call will also be webcast on the “Investor Relations” section of the First Data Web site, http://ir.firstdatacorp.com/events.cfm. Please click on the webcast link at least 15 minutes prior to the call. A slide presentation to accompany the call will be included in the webcast and also will be available under the “Investor Relations” section of the Web site.





About First Data

First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.

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Posted by John B. Frank Thursday, March 11, 2010 0 comments

First Data Names Joe Forehand as Chairman and Interim CEO as Michael Capellas Joins KKR

Image representing First Data Corp as depicted...
ATLANTA--(BUSINESS WIRE)--First Data Corporation and its board of directors today announced the appointment of board member Joe Forehand, former chairman and CEO of Accenture, as chairman and interim chief executive officer (CEO). Forehand will succeed Michael Capellas on March 31, 2010. Capellas, after serving as CEO for three years, has accepted a new role as senior advisor at KKR focusing on technology. He will continue to support First Data in an advisory capacity.



Henry Kravis, co-founder of KKR and a member of First Data’s board of directors, said, "I would like to express my deep appreciation to Michael Capellas for his leadership and significant accomplishments at First Data. First Data has shown exceptional resiliency and continues to grow and invest during this economic downturn. I look forward to working with Michael in his new role as KKR senior advisor, and I am confident he will be a strong contributor to our technology team.”



Under Capellas’s leadership, First Data undertook multiple strategic initiatives and expanded into new businesses, becoming the global leader in electronic commerce and payment solutions for merchants, financial institutions and card issuers. Since 2007, the company has achieved its strategic goals of delivering solid organic growth, investing heavily in technology and realizing substantial cost savings. Capellas has recruited a world-class management team, reestablished new product development as a core capability and has realigned the company around two global lines of business – retail and alliance services and financial services. Other accomplishments that have strengthened First Data’s market and financial position include:

  • Signing more than 500,000 new merchants in 2009, bringing the total to 6 million merchants in 36 countries;

  • Creating industry-changing strategic alliances, including with Bank of America and ICICI, India’s largest private-sector bank;

  • Extending and expanding distribution agreements with Wells Fargo, PNC and Citi;

  • Announcing significant new client wins and renewals with American Express, Capital One and Citi;

  • Launching new products, including a new eCommerce platform; TransArmor, a new data security solution in partnership with RSA; and FirstVision, the market-leading platform for issuing and processing credit, debit and prepaid cards around the world; and

  • Dramatically improving service quality through the consolidation of data centers, call centers and merchant platforms.

“We have made great strides in a difficult economic environment, and I feel privileged to have worked with so many accomplished professionals that helped steer the company in the right direction. Markets are made at the bottom, and the accomplishments of the past three years will undoubtedly strengthen our position once the economy recovers. I am extremely proud of the team and all of the employees. With the company on a solid path, I have decided that this is the right time for me to join KKR as senior advisor focusing on technology,” said Chairman and CEO Capellas.



Forehand, 61, currently a member of First Data’s board of directors and a senior advisor at KKR, was most recently chairman and CEO of Accenture where he spent 34 years of his career. Forehand served as Accenture’s CEO from November 1999 through August 2004 and as Accenture’s chairman from 2001-2006.



Said KKR member and First Data Board Director Scott Nuttall, "Joe Forehand is a proven leader. He guided Accenture through its IPO and a period of significant growth and success. He has been an important part of KKR's efforts as a senior advisor and has more recently been directly involved with First Data as an advisor to management and a board member. As a result, we expect a seamless transition and no change in the strategic direction of the company."



“First Data has a great history, a great team and a great future. I am very excited about the opportunity to make the company an even stronger leader in electronic commerce and payment technology solutions,” said newly named Chairman and Interim CEO Forehand.





Biographical highlights on Joe Forehand, newly named chairman and interim CEO

Forehand is currently a senior advisor at KKR and prior to that served as chairman and chief executive officer at Accenture, where he spent 34 years of his career. Forehand served as Accenture’s CEO from November 1999 through August 2004 and as chairman from 2001-2006. He led Accenture through a period of significant change and growth – including launching one of the largest global rebranding campaigns. In July 2001, Forehand led the company in its IPO, one of the largest in U.S. history. During Forehand’s term as CEO, Accenture grew from $9.6 billion in revenue and 66,000 employees to $13.7 billion in revenue and 103,000 employees. As a public company under his leadership, Accenture's total return to shareholders was 74 percent over a period of time when the S&P 100 Index decreased 14 percent. He also serves as chairman of the board of Aricent, a global innovation, technology and services company, and on the board of directors of the Auburn University Foundation. Forehand holds a bachelor’s degree in industrial engineering from Auburn University and a master’s degree in industrial administration and an honorary doctorate from Purdue University.



About First Data

First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.



Media Conference Call

First Data will host a media conference call at 11 a.m. EST to discuss this announcement. Participants will include First Data Chairman and CEO Michael Capellas and incoming Chairman and interim CEO Joe Forehand.

Dial-In Information:

To access the “First Data Update” conference call, you will need to dial one of the following telephone numbers. Please dial in 10 minutes prior to the start time to be entered into the conference in a timely fashion.



U.S. Toll-free: +1 (877) 303-6502



Outside of the U.S.: +1 (224) 357-2195



The conference call will be recorded for playback. To access the recording, please use one of the following dial-in numbers and the conference ID 62378336.



U.S. Toll-free Encore Dial In: +1 (800) 642-1687



Outside of the U.S. Encore Dial In: +1 (706) 645-9291

The recording will be available from March 11, 2010, at 12 p.m. EST until March 25, 2010, at 12:59 p.m. EST.



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