First Data 2014 Annual Report Download - page 34

Download and view the complete annual report

Please find page 34 of the 2014 First Data annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 181

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181

Output services revenue increased in 2013 compared to 2012 due to net new print and plastics business and growth from existing customers.
Other revenue consists mostly of revenue from remittance processing, information services, online banking and bill payment services as well as voice
services.
Other revenue decreased in 2013 compared to 2012 due to decreases in information services, check clearing and voice services driven by lost or disposed
business partially offset by increases in remittance processing resulting from net new business. The disposed businesses impacted the other transaction and
processing service fee revenue growth rate for 2013 compared to 2012 by approximately 12 percentage points.
Financial Services Segment EBITDA increased significantly in 2014 compared to 2013 due to the impact of the revenue items noted above as well as
decreased operating expenses, as a result of lower headcount and changes in compensation programs. The decrease in operating expenses positively impacted
the segment EBITDA growth rate by 5 percentage points in 2014 when compared to 2013.
Financial Services segment EBITDA increased in 2013 compared to 2012 due mostly to decreased operating expenses resulting from our cost reduction
initiatives partially offset by declines in revenue noted above. The decrease in operating expenses positively impacted the segment EBITDA growth rate by 6
percentage points in 2013 when compared to 2012.









Revenues:
Transaction and processing service fees
$ 1,378.5
$ 1,320.3
$ 1,291.2
4 %
2 %
Product sales and other
383.6
367.2
391.0
4 %
(6)%
Equity earnings in affiliates
29.7
31.9
36.2
(7)%
(12)%
Segment revenue
$ 1,791.8
$ 1,719.4
$ 1,718.4
4 %
— %
Segment EBITDA
$ 532.7
$ 475.3
$ 483.8
12 %
(2)%
Segment margin
30%
28%
28%
200 bps
—
Key indicators:
International transactions (a)
10,222.4
9,450.0
8,556.5
8 %
10 %
International card accounts on file (end of
period) (b)
86.0
78.8
73.6
9 %
7 %
(a) International transactions include VISA, MasterCard, and other payment network merchant acquiring and switching and debit issuer transactions for clients outside the U.S.
Transactions include credit, signature debit and PIN-debit POS, POS gateway, and ATM transactions. International transactions for the year ended December 31, 2013 and 2012
reflect an updated count of transactions.
(b) International card accounts on file include bankcard and retail.
Segment revenue in 2014 compared to 2013 was impacted by the items discussed below as well as foreign currency exchange rate movements. Foreign
currency exchange rate movements negatively impacted the total segment revenue growth rates in 2014 compared to 2013 by 4 percentage points and
negatively impacted growth rates in 2013 compared to 2012 by 2 percentage points.
Transaction and processing service fees revenue includes merchant related services and card services revenue. Merchant related services revenue
encompasses merchant acquiring and processing revenue, debit transaction revenue, POS/ATM transaction revenue and fees from switching services. Card
services revenue represents monthly managed service fees for issued cards. Merchant related services transaction and processing service fee revenue
represented approximately 60% and card services revenue represented approximately 40% of total transaction and processing service fees revenue for the
periods presented.
34