- Range Change Due Primarily to Sale of GCA -
DENVER, April 5 /PRNewswire-FirstCall/ -- First Data Corp. (NYSE: FDC), a
global leader in electronic commerce and payment services, today announced
that it is revising its 2004 EPS guidance upward by $0.17. The change is due
to the gain that resulted from the March sale of the company's 67 percent
ownership interest in GCA. It was partially offset by restructuring charges
associated with eONE Global subsequent to the announcement earlier today
concerning its new Simpay contract.
The impact of these events will be accounted for through First Data's
continuing operations, and will result in a new 2004 EPS range from continuing
operations of $2.17 to $2.35.
First Data previously announced the sale of its 67 percent interest in
Global Cash Access LLC (GCA) to GCA Holdings LLC. GCA is a leading supplier
of cash access and customer relationship marketing technologies to the gaming
industry. As announced previously, First Data will continue to provide a
variety of services to GCA, including check guarantee services, ATM
transactions and Western Union Money Transfers.
First Data will provide more detail when it releases its first quarter
earnings on April 22.
About First Data
First Data Corp. (NYSE: FDC), with global headquarters in Denver, helps
power the global economy. As a leader in electronic commerce and payment
services, First Data serves approximately 3.5 million merchant locations,
1,400 card issuers and millions of consumers, making it easy, fast and secure
for people and businesses to buy goods and services using virtually any form
of payment. With 30,000 employees worldwide, the company provides credit,
debit, smart card and stored-value card issuing and merchant transaction
processing services; Internet commerce solutions; money transfer services;
money orders; and check processing and verification services throughout the
United States. First Data also offers a variety of payment services in the
United Kingdom, Australia, Canada, Japan, Mexico, Spain, the Netherlands, the
Middle East and Germany. Its Western Union and Orlandi Valuta money transfer
networks include a total of approximately 182,000 agent locations in more than
195 countries and territories.
Notice to Investors, Prospective Investors and the Investment Community
Cautionary Information Regarding Forward-Looking Statements
Statements in this press release regarding First Data Corporation's
business which are not historical facts, including the earnings projection,
are "forward-looking statements." All forward-looking statements are
inherently uncertain as they are based on various expectations and assumptions
concerning future events and they are subject to numerous known and unknown
risks and uncertainties which could cause actual events or results to differ
materially from those projected. Important factors upon which the Company's
forward-looking statements are premised include: (a) no unanticipated
developments that delay or negatively impact the integration of Concord EFS,
Inc. according to the Company's integration plans, including its plans to
integrate IT systems, eliminate duplicative overhead and costs, and retain
customers and critical employees; (b) the divestiture of NYCE Corporation
within the time period allowed in the Company's agreement with the Department
of Justice on terms reasonable to the Company; (c) continued growth at rates
approximating recent levels for card-based payment transactions, consumer
money transfer transactions and other product markets; (d) successful
conversions under service contracts with major clients; (e) renewal of
material contracts in the Company's business units consistent with past
experience; (f) timely, successful and cost-effective implementation of
processing systems to provide new products, improved functionality and
increased efficiencies; (g) successful and timely integration of significant
businesses and technologies acquired by the Company and realization of
anticipated synergies; (h) continuing development and maintenance of
appropriate business continuity plans for the Company's processing systems
based on the needs and risks relative to each such system; (i) absence of
consolidation among client financial institutions or other client groups which
has a significant impact on FDC client relationships and no material loss of
business from significant customers of the Company; (j) achieving planned
revenue growth throughout the Company, including in the merchant alliance
program which involves several joint ventures not under the sole control of
the Company and each of which acts independently of the others, and successful
management of pricing pressures through cost efficiencies and other cost
management initiatives; (k) successfully managing the credit and fraud risks
in the Company's business units and the merchant alliances, particularly in
the context of the developing e-commerce markets; (l) anticipation of and
response to technological changes, particularly with respect to e-commerce;
(m) attracting and retaining qualified key employees; (n) no unanticipated
changes in laws, regulations, credit card association rules or other industry
standards affecting FDC's businesses which require significant product
redevelopment efforts, reduce the market for or value of its products or
render products obsolete; (o) continuation of the existing interest rate
environment so as to avoid increases in agent fees related to Payment
Services' products and increases in interest on the Company's borrowings; (p)
absence of significant changes in foreign exchange spreads on retail money
transfer transactions, particularly in high-volume corridors, without a
corresponding increase in volume or consumer fees; (q) continued political
stability in countries in which Western Union has material operations; (r)
implementation of Western Union agent agreements with governmental entities
according to schedule and no interruption of relations with countries in which
Western Union has or is implementing material agent agreements; (s) no
unanticipated developments relating to previously disclosed lawsuits,
investigations or similar matters; (t) no catastrophic events that could
impact the Company's or its major customer's operating facilities,
communication systems and technology or that has a material negative impact on
current economic conditions or levels of consumer spending; (u) no material
breach of security of any of our systems; and (v) successfully managing the
potential both for patent protection and patent liability in the context of
rapidly developing legal framework for expansive software patent protection.
FDC-1
SOURCE First Data Corp.
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Related links:
http://www.firstdata.com
CONTACT:
Investor Relations: David Banks,
+1-303-967-8057, david.banks@firstdatacorp.com, or Media
Relations: Staci Busby, +1-303-967-7188,
staci.busby@firstdatacorp.com, both of First Data Corp.
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