Tuesday, Total System Services, Inc. (TSS) reported a lower profit for the third quarter, as revenues slid 1.6% from last year, impacted by lower revenues from the company's electronic payment processing services. However, the company reaffirmed its full-year guidance.
Total System's net income attributable to the company for the third quarter was $55.03 million or $0.28 per share, down from $64.07 million or $0.32 per share in the year-ago quarter. The recent quarter included a net loss of $2.93 million or $0.01 per share related to the company's discontinued operations, TSYS Total Debt Management.
The Columbus, Georgia-based company's quarterly revenues decreased by 1.6% to $432.30 million from $439.45 million in the prior-year quarter. On a non-GAAP basis, total revenues in constant currency would have been $442.63 million, up 0.7% from last year, the company said.
On average, seventeen analysts polled by Thomson Reuters expected the company to earn $0.29 per share, on revenues of $409.86 million for the quarter. Analysts' estimates typically exclude one-time items.
In the preceding second quarter, the company's net income had declined to $53.4 million or $0.27 per share from $63.1 million or $0.32 per share in the year-ago period. Quarterly revenues declined to $412.0 million from $429.6 million for the same period last year.
For the quarter under review, revenues for electronic payment processing services declined 6.3% to $238.45 million from $254.56 million for the prior year period. Revenues for merchant acquiring services increased by 11.3% to $71.83 million from $64.57 million a year earlier, while other service revenues declined by 9.1% to $48.68 million from $53.58 million for the year-ago period.
Total revenues for North American services decreased 8.2% to $261.58 million from $284.93 million and international service revenues came down by 2.2% to $86.17 million from $88.09 million in the year-ago quarter. Merchant services' revenue increased 25.8% year-over-year to $93.83 million from $74.61 million last year.
On a geographical basis, U.S. revenues decreased 2.7% to $304.9 million from $313.4 million, and Europe revenues declined 8.6% to $70.4 million from $77.0 million last year. Revenues for Canada increased 14.7% to $36.5 million from $31.8 million and revenues for Japan surged 60% to $11.5 million from $7.2 million last year.
On a constant currency basis, International Services segment's total revenues grew 9.6% as compared to a reported GAAP decline of 2.2%.
Total operating expenses for the quarter rose modestly by 0.1% to $344.44 million, reflecting a 9.9% rise in reimbursable items to $73.33 million from $66.74 million for the same quarter last year.
For the nine month period, the company's net income attributable to the shareholders declined to $155.00 million or $0.79 per share from $183.77 million or $0.93 per share in the prior year. Total revenues for the nine-month period declined by 2.8% to $1.25 billion from $1.29 billion last year.
Amongst others in the industry, Fiserv, Inc. (FISV), today, reported an increase in second-quarter net income to $140 million or $0.90 per share from $100 million or $0.60 per share a year-ago. Quarterly revenues of the company declined to $1.03 billion from $1.29 billion in the prior-year quarter and adjusted revenues declined to $983 million from $1.02 billion in the prior year, primarily due to declines in the home equity loan processing business.
Yet another competitor, Fidelity National Information Services Inc. (FIS) reported a decline in second-quarter profit hurt by lower revenues. The company's net income attributable to common stockholders declined to $59.6 million or $0.31 per share from $72.8 million or $0.37 per share last year. However, on a non-GAAP basis, net earnings rose to $0.42 per share from $0.34 per share in the prior year. Revenues decreased by 4% year-over-year to $834.8 million.
Looking ahead to the full year 2009, Total System reaffirmed its guidance for net income in the range of $217 million - $221 million, representing a decline of 13% to 11%, on total revenues of $1.637 billion - $1.665 billion, representing a decline of 5% to 3%.
TSS closed Tuesday's regular trading on the NYSE at $16.55, up $0.08 or 0.49% on volumes of 1.54 million shares. In the past 52-week period, the stock traded in the range of $10.36 - $16.92, with an average 3-month volume of 1.18 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.