NetSpend Holdings Inc. (NASDAQ: NTSP), a provider of general-purpose reloadable prepaid debit cards and related alternative financial services, released its second-quarter financial results last month.
NetSpend reported second-quarter revenue of $74.4 million, representing an increase of 10% over the same period in the previous year. The year-over-year increase in revenue was mainly due to a rise in the number of active cards of around 5% and a 25% rise in the company’s direct deposit customer base. This was offset slightly by a drop in gift card-related revenue.
The company’s net income for the second quarter of 2011 was $7.6 million, representing an increase of 19% over the same period in the previous year.
During the second quarter of 2011, the company’s number of active cards with direct deposit increased 25% to 771,000. The percentage of active cards with direct deposit at the end of second quarter of 2011 was 37%. The company’s GPD card revenue increased 13% to $74 million.
Last month, NetSpend also provided its guidance for full-year 2011. The company expects full-year 2011 revenue to come in between $306 million and $314 million. Adjusted EBITDA is expected to come in between $83.5 million and $87.5 million in 2011.
Since the release of quarterly results last month NetSpend shares fell almost 31%, compared with a 7.08% decline for the NASDAQ. Year to date, the stock’s performance has been even more disappointing, falling 58.38%, compared with 6.86% decline for the NASDAQ.