First Data

- Revenue growth of 1% on a constant currency basis
- Signed 117,000 domestic merchant locations
- Renewed 130 contracts with financial institutions
- International transactions up 10%, total card accounts on file up 5%

DENVER, May 15, 2009 (BUSINESS WIRE) -- First Data Corp. today reported its financial results for the quarter ending March 31, 2009. Consolidated revenues were $2.1 billion, down 2% or up 1% on a constant currency basis. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $491 million, down 15% or down 11% on a constant currency basis. In addition to the adverse impact of the strong U.S. dollar, adjusted EBITDA comparisons were unfavorably affected by lower royalties following a large increase in the first quarter of last year. Excluding currency effects and the change in royalty revenue, adjusted EBITDA was down 6%. The net loss attributable to First Data was $231 million.

"Our revenue base held steady in the quarter as we added new merchant and bank customers," said Michael Capellas, chairman and CEO of First Data. "We will continue to invest in new product development to fuel long-term growth while driving cost efficiencies to sustain profitability."

Segment Results

Retail and Alliance Services

Retail and Alliance Services reported revenue of $1.2 billion, up 7%. Retail and Alliance Services signed 117,000 merchant locations in the quarter. In addition, 21 new independent sales organizations, 12 new referral partners and two new revenue share agreements were added to the distribution network. Excluding debit network fees, segment revenue was down 7% and was primarily affected by weakness in the overall economy and continued transaction mix shifts. EBITDA was $242 million, down 19%, and EBITDA margin excluding debit network fees was 33.2%. Operating profit was $54 million, compared with $83 million in the first quarter of 2008. Operating profit margin was 4.7%.

Financial Services

For the quarter, Financial Services revenue was $544 million, down 3%. Revenue excluding reimbursables was down 1%. Financial Services renewed 130 contracts in the quarter. EBITDA was $158 million, down 6%, and EBITDA margin excluding reimbursables was 42.5%. Operating profit was $76 million, compared with $90 million in the first quarter of 2008. Operating profit margin was 13.9%.

International

For the quarter, International generated revenue of $369 million, down 16%. Revenue on a constant currency basis, excluding acquisitions and divestitures, was up 1%. Transactions and point-of-sale locations each showed healthy growth at 10% and 9%, respectively. EBITDA was $73 million, down 9%, and EBITDA margin was 19.9%. On a constant currency basis, EBITDA was $91 million, up 13%, and EBITDA margin was 20.4%. Operating profit was $7 million, compared with $19 million in the first quarter of 2008. Operating profit margin was 1.8%.

Other Matters

Segment Realignment

Effective Jan. 1, 2009, First Data adopted a revised segment reporting structure. The company's segments include Retail and Alliance Services, Financial Services, International and Integrated Payment Systems. For applicable prior year and quarterly periods, the company has provided financials realigned to these segments in connection with our first quarter 2009 Securities and Exchange Commission Form 10-Q filing.

Non-GAAP Measures

In certain circumstances, results have been presented that are non-GAAP measures and should be viewed in addition to, and not in lieu of, the company's reported results. Reconciliations to comparable GAAP (generally accepted accounting principles) measures are available in the accompanying schedules and in the "Investor Relations" section of the company's web site at www.firstdata.com.

Investor and Analyst Conference Call

The company will host a conference call and webcast on Friday, May 15, at 8 a.m. EDT to review first quarter 2009 financial results. Michael Capellas, chairman and CEO of First Data, will lead the call. Also participating will be Phil Wall, chief financial officer, and Silvio Tavares, senior vice president, investor relations.

To listen to the call, dial 877-795-3635 (U.S.) or +1-719-325-4765 (outside the U.S.) 10 minutes prior to the start of the call. The call will also be webcast on the "Investor Relations" section of the First Data Web site, http://ir.firstdatacorp.com/events.cfm. Please click on the webcast link at least 15 minutes prior to the call. A slide presentation to accompany the call will be included in the webcast and also will be available under the "Investor Relations" section of the Web site.

A replay of the call will be available through May 20, 2009, at 888-203-1112 (U.S.) or +1-719-457-0820 (outside the U.S.), replay pass code 9703413, and via webcast at http://ir.firstdatacorp.com/events.cfm.

Please note: All statements made by First Data officers on this call are the property of First Data and subject to copyright protection. Other than the replay, First Data has not authorized, and disclaims responsibility for any recording, replay or distribution of any transcription of this call.

About First Data

First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.

FDC-1

SOURCE: First Data Corporation

First Data
Investor and Analyst Relations:
Silvio Tavares, 303-967-8276
silvio.tavares@firstdata.com

Copyright Business Wire 2009