* To meet high end of $1.26-$1.28 per share forecast
* Ups current buyback plan to 20 million shares
* Has about 100 million accounts to be converted in next two
July 24 TSYS Inc posted a higher
second-quarter profit on growth in cardholder transactions and
the payment processor said it would meet the high-end of its
2012 profit outlook.
The company had previously said it expected to earn
$1.26-$1.28 per share from continuing operations for the full
year, on revenue of between $1.81 billion and $1.85 billion.
TSYS, which was once part of regional lender Synovus
Financial Corp, also raised its current share buyback
plan to 20 million shares from 15 million and extended the plan
to April 30, 2014.
For the second quarter, net income attributable to TSYS
common shareholders rose 24 percent to $66.7 million, or 35
cents per share, up from $53.7 million, or 28 cents per share, a
Total revenue rose more than 3 percent to $462.7 million.
Same client transactions in the company's card issuer
processing business rose 12 percent, the company said in a
TSYS's shares touched a three-year high last week after the
company won a contract to provide processing services for Bank
of America's U.S. consumer credit card business.
The Bank of America deal will also raise the company's
payment processing market share.
"Once we convert the (Bank of America) portfolio, we believe
our U.S. market share of the Visa and MasterCard credit card
market will be in the range of about 40 percent," TSYS CEO Phil
Tomlinson said on a post-earnings conference call.
Including the Bank of America deal, the company currently
has 100 million accounts to be converted onto its processing
platform over the next two years.
CEO Tomlinson also said the company was in talks to get
processing contracts from banks.
"We have some very good prospects out there. Some large
names that you would certainly recognize and we hope we'll be
able to bring some of those to the table in the future,"
Shares of the Columbus, Georgia-based company were up over 1
percent in trading after the bell. They closed at $23.68 on
Tuesday on the New York Stock Exchange.