September 27, 2012 / 9:57 PM / 5 years ago

Global Payments first-quarter profit falls on higher costs

(Reuters) - Global Payments Inc (GPN.N), which provides electronic payments processing services, said quarterly profit fell due to higher costs and a charge related to a security breach earlier this year.

First-quarter profit fell to $46.6 million, or 59 cents per share, from $63.9 million, or 79 cents per share, a year earlier.

Revenue rose 9 percent to $590.2 million. Cash earnings were 87 cents per share, in line with analysts’ estimates.

The company took a one-time charge of 20 cents per share in the quarter on account of an intrusion into its processing system.

    In March, it said an “unauthorized access” had been made into its systems, compromising credit card data. Following the breach, card network Visa Inc (V.N) dropped the company from its list of approved service providers.

    Global Payments reaffirmed its full-year cash earnings target of $3.59 per share to $3.66 per share and revenue target of $2.36 billion to $2.40 billion.

    The company also expects to close a new five-year term loan facility of $700 million in the coming days, it said in a statement.

    The company’s shares, which closed at $43.80 on Wednesday on the New York Stock Exchange, were down 1 percent in extended trading.

    Reporting by Avik Das in Bangalore; Editing by Sreejiraj Eluvangal

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