Global Payments Inc. Reports Operating Results (10-Q)

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Jan 08, 2013
Global Payments Inc. (GPN, Financial) filed Quarterly Report for the period ended 2012-11-30.

Global Payments, Inc. has a market cap of $3.72 billion; its shares were traded at around $45.89 with a P/E ratio of 12.6 and P/S ratio of 1.6. The dividend yield of Global Payments, Inc. stocks is 0.2%. Global Payments, Inc. had an annual average earning growth of 14.6% 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, 2012, revenues increased 11% to $588.5 million compared to the prior year s comparable period. For the six months ended November 30, 2012, revenues increased 10% to $1,178.8 million compared to the prior year s comparable period. This growth is primarily due to growth driven by our U.S. ISO channel, reduced interchange expenses due to legislation as explained below, growth from our gaming business and direct sales channels, and growth in Europe; partially offset by pricing compression in Canada.

For the three months ended November 30, 2012, revenue from our North America merchant services segment increased 11% to $420.8 million compared to the prior year s comparable period. For the six months ended November 30, 2012, revenue from our North America merchant services segment increased 12% to $847.6 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 to legislation as explained below, and growth from our gaming business and direct sales channels.

For the three months ended November 30, 2012, our Canadian revenue decreased 6%, and our credit and debit card processed transactions grew 4% compared to the prior year period. For the six months ended November 30, 2012, our Canadian revenue decreased 9%, and our credit and debit card processed transactions grew 4% compared to the prior year period. The decrease in revenue was due to pricing compression compared to the prior year s comparable period.

For the three months ended November 30, 2012, International merchant services revenue increased 11% to $167.8 million compared to the prior year's comparable period. For the six months ended November 30, 2011, International merchant services revenue increased 5% to $331.3 million compared to the prior year's comparable period.

Our Europe merchant services revenue for the three months ended November 30, 2012 increased 14% to $131.2 million compared to the prior year period. Our Europe merchant services revenue for the six months ended November 30, 2012 increased 6% to $259.6 million compared to the prior year period. Our Europe revenue growth was driven by growth in the U.K., Russia and the Czech Republic.

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