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(Reuters) -Global Payments reported a rise in first-quarter adjusted profit on Tuesday, bolstered by consistent revenue growth from its merchant solutions business.
WHY IT'S IMPORTANT
Strong wage growth and low unemployment helped consumer spending levels in the reported quarter, despite some customers reducing discretionary spending due to U.S. President Donald Trump's tariff-related inflation concerns and growth uncertainties.
Consumer spending levels in an economy directly affect the earnings of payment technology companies such as Global Payments.
CONTEXT
Global Payments has intensified its focus as a pure-play payments processor business in recent times through acquisitions as it looks to attract larger corporate clients.
The company agreed to buy rival Worldpay from FIS and private equity firm GTCR for $24.5 billion in a three-way deal, announced last month.
As part of the deal, Global Payments will sell its issuer solutions unit, which offers card processing and account services, to FIS for $13.5 billion.
BY THE NUMBERS
On an adjusted basis, Global Payments reported a 0.5% rise in its merchant solutions revenue and a 2.6% rise in its issuer solutions business.
Net profit attributable, also on an adjusted basis, to the company rose to $665.3 million, or $2.69 per share, in the three months ended March 31, compared with $634.2 million, or $2.46 per share, a year earlier.
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid)