Retailers’ Late EMV Conversions Continued to Plague Blackhawk in Late 2016
The lasting influence of a few retailers’ slow conversion to EMV chip card acceptance persisted to plague card services issuer Blackhawk Network Holdings Inc. in the last three months of 2016. Blackhawk stated Wednesday that profits fell behind of what was expected due to a “persisted EMV headwind” at shops that sell Blackhawk-equipped cards that had become higher than the enterprise initially forecasted.
Pleasanton, Calif.- based Blackhawk, whose prodcuts incorporate the Blessing Card Shopping center stands that can be spotted in supermarkets and other commercial zones, had expected the EMV chip card issues to lower as 2016 went on. Two of the company’s biggest anti-EMV collaborators achieved EMV consistence in the final quarter, the organization stated in its end of year profit earnings report.
The EMV problem cost Blackhawk $19 million in working capital in the final 3 months of the year and $18 million in benefits, duties, deterioration, and amortization (EBITDA). Balanced by esteem cuts, the net wage impact dropped to $6 million. Similar numbers for all of 2016 had been $52 million in balanced income and $46 million in EBITDA.
Dollar exchange on Blackhawk-prepared cards was calculated to be $6.95 billion in the fourth quarter, down somewhat from $7 billion a year before.
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