BankingFinancial District

Evertec Inc. reports 11% 2Q revenue jump

Evertec Inc. reported Thursday that its total revenue increased by $7.4 million during the second quarter ended June 30, or 11 percent to $76.2 million, when compared to the same period in 2010, an improvement the company attributed in part to last year’s banking consolidation and certain improvements in the island’s economic activity.

During the three-month period, Evertec’s three core businesses showed improvement: its transaction processing segment revenue increased by $1.7 million, or 9 percent; merchant acquiring segment net revenue increased by $1.2 million, or 9 percent; and its business solutions segment revenue increased by $4.5 million, or 13 percent.

“Revenue growth across our three reportable segments was primarily attributable to higher volume and average value of transactions in both our local and international markets, and higher demand for our consulting and banking services,” Evertec officials said in the analysis of its quarterly results.

Operating costs and expenses, excluding depreciation and amortization and non-recurring expenses, decreased by less than 1 percent, when compared to the same period in 2010. Meanwhile, adjusted EBITDA for the quarter ended June 30, was $35.9 million, an increase of $5.5 million, or 18 percent, when compared to the same period in 2010.

“We are very pleased with our performance. Our second quarter successfully built on our first quarter results,” said Evertec President Félix M. Villamil. “Each of our three business segments produced strong revenue growth in our local and international markets.”

“Our results continue to be driven by the secular growth dynamics related to electronic payments as well as an increase in demand for our services as we continue to provide value added business solutions to our clients,” Villamil noted.

For the six-month period ended June 30, Evertec’s revenue increased $15 million, or 11 percent, to $149.7 million, when compared to the same period in 2010. Operating costs and expenses, excluding depreciation and amortization and non-recurring expenses, increased by $1.5 million, or 2 percent, when compared to the same year-ago six-month period.

Author Details
Business reporter with 25 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other areas of the economy.

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