First Data 2009 Annual Report Download - page 58

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FIRST DATA CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Retail and Alliance Services segment EBITDA in 2008 was also positively impacted by the annual fees and
change in pricing discussed in the acquiring revenue discussion above. Segment EBITDA in 2008 was negatively
impacted due to a slow 2008 holiday season. The 2008 segment EBITDA was not impacted by a charge similar
to that recognized during the first quarter 2007 when the Company bought out a revenue sharing agreement as
part of a new, larger relationship with Discover Financial Services LLC.
Segment EBITDA for 2008 increased compared to the same pro forma 2007 period due to the items noted
above.
Financial Services Segment Results
(in millions)
Historical Pro Forma Historical
Percent ChangeSuccessor Successor Predecessor
Year ended
December 31,
2009
Year ended
December 31,
2008
Year ended
December 31,
2007
Period from
September 25
through
December 31,
2007
Period from
January 1
through
September 24,
2007
2009
vs.
2008
Historical
2008
vs.
Pro Forma
2007
Revenues:
Transaction and processing
service fees ............ $ 1,379.8 $ 1,480.4 $ 1,483.1 $405.6 $1,077.5 (7)% (0)%
Investment income, net ..... 1.0 2.6 4.1 0.7 3.4 (62)% (37)%
Product sales and other ..... 62.0 34.5 58.3 8.8 49.5 80% (41)%
Segment revenue .......... $ 1,442.8 $ 1,517.5 $ 1,545.5 $415.1 $1,130.4 (5)% (2)%
Segment EBITDA ......... $ 645.3 $ 753.1 $ 723.2 $202.2 $ 521.0 (14)% 4%
Segment margin .......... 45% 50% 47% 49% 46% (5)pts 3pts
Year ended December 31,
2009 2008 2007
Key indicators:
Domestic debit issuer
transactions (a) ......... 12,222.5 12,042.2 11,651.4 1% 3%
Domestic active card
accounts on file (end of
period) (b)
Bankcard ............ 48.3 50.5 48.4 (4)% 4%
Retail ............... 72.6 77.1 79.9 (6)% (4)%
Total ........... 120.9 127.6 128.3 (5)% (1)%
Domestic card accounts on
file (end of period) (c)
Bankcard ............ 123.2 131.0 130.7 (6)% 0%
Retail ............... 385.3 379.4 381.8 2% (1)%
Debit ............... 153.3 126.8 122.3 21% 4%
Total ........... 661.8 637.2 634.8 4% 0%
(a) Domestic debit issuer transactions include VISA and MasterCard signature debit, STAR ATM, STAR
PIN-debit POS and ATM and PIN-debit POS gateway transactions.
58