Global Payments Inc. (GPN, Financial) filed Quarterly Report for the period ended 2011-11-30.
Global Payments Inc. has a market cap of $3.76 billion; its shares were traded at around $47.99 with a P/E ratio of 16.1 and P/S ratio of 2. The dividend yield of Global Payments Inc. stocks is 0.2%. Global Payments Inc. had an annual average earning growth of 14.3% over the past 10 years. GuruFocus rated Global Payments Inc. the business predictability rank of 4-star.
For the three months ended November 30, 2011, revenue from our North America merchant services segment increased 16% to $378.9 million compared to the prior year s comparable period. For the six months ended November 30, 2011, revenue from our North America merchant services segment increased 14% to $757.6 million compared to the prior year s comparable period. North America revenue growth was driven by our U.S. ISO channel, reduced interchange expenses due legislation as explained below, strong growth from our gaming business and solid performance from our direct channel.
We grow our United States revenue by adding small and mid-market merchants in diversified vertical markets, primarily through our ISO channel. For the three months ended November 30, 2011, our United States direct credit and debit card processed transactions grew 13%, and our total United States revenue grew 19% compared to the prior year period. For the six months ended November 30, 2011, our United States direct credit and debit card processed transactions grew 13%, and our total United States revenue grew 16% compared to the prior year period. For the three months ended November 30, 2011 compared to the prior year s comparable period, our United States average ticket decreased approximately 2% which was offset by increased spreads. For the six months ended November 30, 2011 compared to the prior year s comparable period, our United States average ticket decreased approximately 3% which was offset by increased spreads. This decline in average ticket is primarily due to a shift toward smaller merchants added through our ISO channel. Smaller merchants tend to have lower average tickets than larger merchants. The effect of consumers replacing cash-based payments with debit card transactions also lowers our overall average ticket amounts. Based on our mix of merchants, slightly more than half of our United States transactions are comprised of a combination of signature- and PIN-based debit transactions, with PIN-based debit transactions representing less than 10% of our total transactions.
Our Europe merchant services revenue for the three months ended November 30, 2011 increased 44% to $115.2 million compared to the prior year period. Our Europe merchant services revenue for the six months ended November 30, 2011 increased 59% to $244.6 million compared to the prior year period. Our Europe merchant services revenue increased due to the impact of our acquisition in Spain on December 20, 2010, pricing benefits in the United Kingdom and favorable foreign currency trends during the six months ended November 30, 2011.
Sales, general and administrative expenses increased 20% to $248.0 million for the three months ended November 30, 2011 compared to the prior year s comparable period. Sales, general and administrative expenses increased 19% to $490.6 million for the six months ended November 30, 2011 compared to the prior year s comparable period. This increase is primarily due to an increase in commission payments to ISOs. As a percentage of revenue, sales, general and administrative expense remained relatively flat at 46.7% for the three months ended November 30, 2011 compared to 46.5% in the prior year s comparable period. As a percentage of revenue, sales, general and administrative expense decreased to 45.7% for the six months ended November 30, 2011 compared to 46.8% in the prior year s comparable period. This decrease is due to increasing revenues due to pricing changes in the United Kingdom which did not have proportional increases in sales, general and administrative expenses.
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Global Payments Inc. has a market cap of $3.76 billion; its shares were traded at around $47.99 with a P/E ratio of 16.1 and P/S ratio of 2. The dividend yield of Global Payments Inc. stocks is 0.2%. Global Payments Inc. had an annual average earning growth of 14.3% over the past 10 years. GuruFocus rated Global Payments Inc. the business predictability rank of 4-star.
Highlight of Business Operations:
For the three months ended November 30, 2011, revenues increased 20% to $530.5 million compared to the prior year s comparable period. For the six months ended November 30, 2011, revenues increased 21% to $1,073.3 million compared to the prior year s comparable period.For the three months ended November 30, 2011, revenue from our North America merchant services segment increased 16% to $378.9 million compared to the prior year s comparable period. For the six months ended November 30, 2011, revenue from our North America merchant services segment increased 14% to $757.6 million compared to the prior year s comparable period. North America revenue growth was driven by our U.S. ISO channel, reduced interchange expenses due legislation as explained below, strong growth from our gaming business and solid performance from our direct channel.
We grow our United States revenue by adding small and mid-market merchants in diversified vertical markets, primarily through our ISO channel. For the three months ended November 30, 2011, our United States direct credit and debit card processed transactions grew 13%, and our total United States revenue grew 19% compared to the prior year period. For the six months ended November 30, 2011, our United States direct credit and debit card processed transactions grew 13%, and our total United States revenue grew 16% compared to the prior year period. For the three months ended November 30, 2011 compared to the prior year s comparable period, our United States average ticket decreased approximately 2% which was offset by increased spreads. For the six months ended November 30, 2011 compared to the prior year s comparable period, our United States average ticket decreased approximately 3% which was offset by increased spreads. This decline in average ticket is primarily due to a shift toward smaller merchants added through our ISO channel. Smaller merchants tend to have lower average tickets than larger merchants. The effect of consumers replacing cash-based payments with debit card transactions also lowers our overall average ticket amounts. Based on our mix of merchants, slightly more than half of our United States transactions are comprised of a combination of signature- and PIN-based debit transactions, with PIN-based debit transactions representing less than 10% of our total transactions.
Our Europe merchant services revenue for the three months ended November 30, 2011 increased 44% to $115.2 million compared to the prior year period. Our Europe merchant services revenue for the six months ended November 30, 2011 increased 59% to $244.6 million compared to the prior year period. Our Europe merchant services revenue increased due to the impact of our acquisition in Spain on December 20, 2010, pricing benefits in the United Kingdom and favorable foreign currency trends during the six months ended November 30, 2011.
Sales, general and administrative expenses increased 20% to $248.0 million for the three months ended November 30, 2011 compared to the prior year s comparable period. Sales, general and administrative expenses increased 19% to $490.6 million for the six months ended November 30, 2011 compared to the prior year s comparable period. This increase is primarily due to an increase in commission payments to ISOs. As a percentage of revenue, sales, general and administrative expense remained relatively flat at 46.7% for the three months ended November 30, 2011 compared to 46.5% in the prior year s comparable period. As a percentage of revenue, sales, general and administrative expense decreased to 45.7% for the six months ended November 30, 2011 compared to 46.8% in the prior year s comparable period. This decrease is due to increasing revenues due to pricing changes in the United Kingdom which did not have proportional increases in sales, general and administrative expenses.
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