NetSpend 2012 Annual Report Download - page 6

These efforts are already starting to show results; for although we
began 2012 with margins of 4.3 percent in the first quarter, we
finished with margins of 6.9 percent for the full year. In spite of the
economic turbulence in Europe, we did exceptionally well in 2012,
with our total transactions increasing by 17.4 percent. Our revenue
from this segment was $413.5 million, an increase of 4.7 percent
year over year. The International segment represents approximately
22 percent of TSYS’ consolidated revenue.
MERCHANT SERVICES: On the merchant front, we will
continue to expand more in the direct merchant-acquiring business
through internally generated growth as well as acquisitions. We have
diversified our sales distribution model and introduced innovative
new products. We are focused on helping businesses operate more
efficiently. Today, more than half of the revenue within the Merchant
segment comes from our direct merchant-acquiring business. We
continue to look for acquisition opportunities inside and outside the
United States. Our revenue before reimbursables from this segment
was $409.7 million, an increase of 9.8 percent year over year. The
Merchant Services segment represents approximately 27 percent
of TSYS’ consolidated revenue.
ON GROWTH AND INNOVATION
While our performance is measured year over year, our growth
strategy is a five-year, forward-looking plan. For the enterprise,
our corporate strategy is to perfect and grow our issuing-solutions
business, expand our merchant-acquiring business, and become
a more innovative payment solutions provider.
Highlighting our focus on products and solutions, we have
introduced a business initiative that combines technology,
servicing and innovation. This foundational layer makes it easy
to launch future products as well as client- and customer-driven
solutions. Our experience, scale and trusted brand make us a
respected presence among traditional players and young,
entrepreneurial companies with an interest in payment-related
services. As such, TSYS is networking and engaging in active
dialogue with newcomers to provide an incubator of sorts to
help them test their new products with interested TSYS clients.
In order to accelerate growth, we’re also conducting our business
with the mindset of a careful investor. New players, new pricing
—
and those who challenge the status quo
— all stand to influence the
payments industry and the future of money in general. Regardless
of what new developments unfold, we will continue to view our role
as the premier supporter of all of the parties within the payments
ecosystem. We know the payments business inside and out
— its
complexities and the newest regulatory and compliance parameters.
As such, we will always look to join forces with partners to
challenge current thinking, while creating new paradigms to
address the needs of issuers, merchants and consumers.
PLANNING FOR THE FUTURE
I’d also like to thank the TSYS Board for its oversight and active
participation in the numerous committees that guide and direct our
business. We recently formed a new board committee focusing on
technology to assist in the oversight of TSYS’ management of risk
regarding technology, data security, disaster recovery and business
continuity. Reducing operational and business risk is a primary focus
for TSYS. By actively assessing business and strategic risks to existing
business models, we are ensuring that TSYS is aware and responsive
to changes that impact our company
— both today and tomorrow.
The job of a good Board of Directors is to see that the right people
are running the business today
— and to ensure that the company’s
next generation is ready to seamlessly take the reins at a moment’s
notice. We have the next generation of leaders in place and are
grooming their successors. They are as passionate about this
company as we were when it first went public in 1983
— and as
we still are today.
I’d also like to recognize the dedicated service of Becky Yarbrough,
who will retire this April after more than 12 years of service on the
TSYS Board.
PEOPLE-CENTERED PAYMENTS
As has been the case for the past three decades, TSYS will focus
on putting people at the center of payments as we move forward.
And if the first 30 years are any indication, I’m sure the next chapters
of our story will be beyond our imaginations.
Our story started with people and is still centered around people
today. We are thankful that you continue to help us write it.
Sincerely,
Philip W. Tomlinson
Chairman of the Board
& Chief Executive Officer
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LEFT: TSYS converts its first European client, Royal Bank of Scotland® .
()
ABOVE: A ribbon-cutting ceremony at the Knaresborough, U.K., data
center symbolizes TSYS’ growth in the international card industry,
setting the stage for future worldwide expansion. ()