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Payment-card maker CPI Card Group said Thursday that new sales from an existing customer boosted its U.S. prepaid debit card revenue 26% in the second quarter. Littleton, Colo.-based CPI also reported that sold its United Kingdom business to private-investment firm SEA Equity for $4.5 million.
With revenue of $15.4 million in the quarter, CPI’s U.S. prepaid debit sales were 25.9% higher than $12.3 million in the same quarter a year ago. CPI attributed the increase to a new portfolio win with an existing customer. That compares to a more modest 3.5% increase for its U.S. debit and credit segment, which had sales of $43.8 million compared with $42.4 million last year.
CPI said the increase in its U.S. debit and credit sales primarily came from revenue from products like Card@Once, an instant-issuance service, and metal cards. This was partially offset by decreases in card personalization and fulfillment revenue, and lower average selling prices for EMV chip cards.
In all, CPI Card Group reported net sales of $61.5 million in the second quarter, up 12% year-over-year from $54.8 million, and a net loss from continuing operations of $800,000 compared with a $3.3 million loss a year earlier.
In other CPI news, the company announced the sale of its U.K. business, which includes three locations, to London-based SEA Equity Ltd. The deal was valued at $4.5 million. CPI said in a financial filing that it expects to receive cash proceeds of approximately $300,000 after repayment of debts associated with its U.K. operations.
Wall Street liked what it heard from CPI Thursday. In late-morning trading, CPI’s share price was up 26% over Wednesday’s close.
