Credit Cards Hurt American Express Profit
- Share via
American Express Co. said Thursday that its first-quarter profit fell 6% before a gain from new accounting procedures, as the company spent more to promote its ailing credit card and travel business.
The company benefited from strong performances at its financial services, brokerage and investment banking, and financial data units. The company was hurt last year by the recession and problems with its credit card operations.
Overall, American Express reported net income of $465 million, or 95 cents a share, in the first three months of 1992. But that included a gain of $216 million from the adoption of new financial accounting standards on Jan. 1. Revenue totaled $6.68 billion, up from $6.34 billion a year ago.
Before the accounting charge, earnings were $249 million, or 51 cents a share, down from $264 million, or 55 cents a share, in the 1991 first quarter.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
