Expanding its debit card portfolio in Ireland, yesterday
Total System Services Inc.
) entered into a strategic alliance with KBC Bank Ireland, which
is part of the Europe's leading global financial services
provider - KBC Group.
KBC Bank has a history of operations of over 40 years in the
fields of banking and business development. This bank is
currently armed with over 700 employees across Ireland's Dublin,
Cork, Limerick, Belfast and Galway.
As per the deal, Total System will now process KBC Bank's
debit card portfolio through its best-in-class TS2 platform. The
partnership also complements the company's strategy to bolster
its relationship with bank's customers as it plans to offer risk
management, fraud avoidance and other support services on these
Overall, the alliance is expected to strengthen the card
processor's client base and payment processing network in
Ireland. Moreover, the new contract should enhance Total System's
payment volumes and a number of processed transactions, thereby
supporting the financials.
Striding on the Global Growth Track
Total System has been strengthening its clientele by offering
customized and flexible processing solutions to all its partners
across the globe, primarily in the merchant acquiring space.
Additionally, the company is making efforts to tap opportunities
in the recovering markets through high-grade technology.
However, Total System is consistently challenged by strong
competition, currency fluctuations along with stringent
regulatory reforms, which have affected the pricing and credit
allocation of the company. Yet, we believe that a healthy
business model, strategic acquisitions, alliances and technical
competence are expected to consistently drive growth within Total
System. This in turn will enhance capital deployment to boost
shareholder confidence. An optimistic guidance for 2013 and the
recent NetSpend acquisition also boost optimism.
Total System is scheduled to release its second quarter
earnings after the closing bell on Jul 23, 2013. The Zacks
Consensus Estimate for the upcoming quarter stands at 34 cents
per share, down about 4% from the year-ago quarter. However, the
Zacks Consensus Estimate for full-year 2013 is pegged at $1.42
per share, up 10.4% from 2012.
While Total System carries a Zacks Rank #3 (Hold), other
strong performers in the financial sector include
AmTrust Financial Services Inc.
Heartland Payments Inc.
Official Payments Holdings Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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TOTAL SYS SVC (TSS): Free Stock Analysis
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