July 24, 2012 / 9:58 PM / 5 years ago

UPDATE 1-TSYS profit up; to meet high-end of 2012 profit view

* 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 years

July 24 (Reuters) - 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 year earlier.

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 statement.

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,” Tomlinson said.

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.

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