UPDATE 1-TSYS Q2 profit tops Street

* TSYS Q2 EPS from cont ops $0.25 vs est EPS $0.23

* TSYS Q2 revenue up 5 pct to $433.7 mln

* Alliance Data Q2 EPS $0.83 vs est EPS $0.80

July 21 (Reuters) - Payment processor TSYS (TSS.N) reported a quarterly profit that was above market view, helped by higher revenue from its merchant services segment.

For the second quarter TSYS reported net income of $49.7 million, or 25 cents a share, compared with $53.4 million, or 27 cents a share, last year.

Analysts on average were looking for a profit of 23 cents a share, before items, according to Thomson Reuters I/B/E/S.

Revenue rose 5 percent to $433.7 million, above Wall Street expectations of $425.2 million. Total revenue from merchant services was $126.8 million, up about 58 percent.

Separately, credit-card processor Alliance Data Systems Corp (ADS.N) posted second-quarter earnings of 83 cents a share that missed analysts' view of 80 cents a share, hurt by higher operating expenses.

Revenue was up 12 percent at $669.8 million, on an adjusted basis.

The company forecast core earnings of $5.70 to $6.00 a share for 2010.

TSYS shares were up about 2 percent at $14.40 in trading after the bell Wednesday. Alliance Data's stock closed at $57.26 on the New York Stock Exchange.

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For the alerts on Alliance Data, please double-click [ID:nASA00JK0] (Reporting by Brenton Cordeiro in Bangalore; Editing by Vinu Pilakkott)