CINCINNATI – Payments processor Vantiv, spun off from Fifth Third Bancorp in March, reported a quadrupling in second quarter earnings to $20 million as it processed more card transactions.
The company, which processes cards for almost 800 credit unions, reported a 17% surge in revenues to $469 million.
The main reason for the boost in second quarter earnings was a 65% decline, or $19 million, in interest expense. Charges related to the refinancing of debt in conjunction with the company’s March initial public offering created an $18 million loss for first quarter of 2012.
Vantiv, known till last year as Fifth Third Processing, said transactions increased 21% and net revenue increased 20% primarily driven by a 29% increase in transactions in the Merchant Services segment.
For the first six months of the year Vantiv reported a 17% rise in revenues to $902.4 million, but a 48% decline in net income to just $4.6 million.