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Global Payments profit slides due to security breach costs
July 26, 2012 / 8:30 PM / 5 years ago

Global Payments profit slides due to security breach costs

July 26 (Reuters) - Global Payments Inc’s fourth-quarter profit fell 90 percent on costs related to a security breach affecting about 1.5 million cardholder numbers but the company forecast a higher profit in 2013.

Net income attributable to Global Payments fell in the fourth quarter to $5.1 million, or 6 cents a share, from $58.6 million, or 72 cents a share a year ago.

Cash earnings, excluding the data breach charge, were 97 cents a share in the quarter, Atlanta-based Global Payments said. Revenue grew 15 percent to $597 million.

For the 2013 year, the company expects cash earnings per share of between $3.59 and $3.66, on revenue of between $2.36 billion and $2.4 billion.

In March, Global Payments said it had found ‘unauthorized access’ had been made to its systems.

The company took an $84.4 million pre-tax charge related to the breach, which includes an estimate of costs from the card brands and investigation of the breach.

Shares of the company closed at $42.51 on Thursday on the New York Stock Exchange.

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