ATLANTA – Processing giant First Data Corp. on Wednesday reported lower debit fees caused by the Durbin amendment and growing debt service created a $157.4 million loss for the second quarter.
The second quarter loss is less than the $175.8 million loss for the second quarter last year, but up from a loss of $152.5 million for the first quarter of 2012.
Major contributors to the second quarter loss were a $92 million decline in debit network fees and an increase in interest paid on the huge debt incurred in the $27 billion buyout by Kohlberg Kravis Roberts & Co. First Data paid $480.7 million in interest charges for the second quarter, up from $462.3 million for the second quarter last year.
Compounding problems was the fact revenue declined 2% from last year’s second quarter to $2.68 billion.
For the first six months of the fiscal year First Data reported a 1% decline in revenue to $5.25 billion, and a loss of $309.9 million, as interest expenses rose 4% to $941.8 million.