Customer growth helps Vantiv beat 2Q estimates

Symmes Township-based Vantiv Inc. lost $1.4 million in the second quarter as the company worked to integrate Mercury Payment Systems into its operation.

But adjusted net income and net revenue for the payment processing firm beat analysts’ consensus estimates, according to Bloomberg. Adjusted net income, excluding one-time items, rose 12 percent to $92.7 million in the three months that ended June 30, compared to a year ago. Net revenue – sales minus network fees and other costs – increased 12 percent to $331.3 million.

“We delivered another solid quarter of growth, and we executed on many of our strategic initiatives,” said Charles Drucker, Vantiv president and chief executive. “By investing in high-growth channels, we have positioned Vantiv as a leader in the industry that will win share as the market evolves.”

Shares of Vantiv were down 5 percent to $32.78 at the close of trading Thursday.

Vantiv swung to a net loss of $1.4 million, or 1 cent per share, from a profit of $28.9 million, or 20 cents per share.

Adjusted earnings were 47 cents per share. The consensus estimate from analysts was a profit of 46 cents per share.

Vantiv completed its $1.65 billion acquisition of Mercury Payment Systems on June 13. The deal is part of a strategic move by the company to expand its base of merchant and financial institutions and bolster its presence in the integrated payments space.

The company had $70 million in one-time costs related to the transaction, which included debt refinancing for the purchase.

Vantiv processed more than 4.8 billion transactions in the second quarter, up 15 percent from the same quarter last year. It also added Walmart U.S. stores and Sam’s Club debit and credit processing as customers. It now works with more than 1,400 financial institutions and 400,000 merchant locations.

Vantiv said it expects third-quarter net revenue to be $376 million to $382 million, which would be an increase between 28 and 30 percent. Net income is forecast to be between 18 and 20 cents per share.

Vantiv was a business of Fifth Third Bank before it was spun off in 2009.