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Verifone CEO Doug Bergeron on the company’s second-quarter earnings and overseas growth.
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Phones now Visa isn't the only mobile payment company though making big bets on the Olympics veriphone got an early.
Doug per -- on as the CEO joining us now with the Fox Business exclusive from Mountain View California.
Before we get to the Olympics -- got to get to earnings you can have a great second quarter here -- guidance completely split people.
Traders and investors are leaving the stock right now he's down double digit percentages right at this moment you have to tell me what the issue is because your Q3 guidance is less than what the analysts had expected.
Yeah we're really proud of Q2 we had record revenues record earnings margin expansion to record numbers.
And we reaffirmed our Q3 and full year guidance.
But given the the European situation in particular the value the trade weighted dollar index.
Which is gone up four point 3% in the last thirty days.
We became a little more cautious about how are successful and and thriving European business in fact business throughout the world.
Will consolidate up when translated back to US dollars so we didn't raise guidance for the first time in a couple of years I think and this is a pretty sensitive market to not raise guidance I guess.
Yeah and and maybe -- surprise to the upside and then people will reverse their course but let's talk about the European business.
When you break up your business international growth up what a 103%.
To be very very impressive but can you give me Europe specifically can you break that out.
Yeah -- media which includes the Middle East and Africa.
Was up.
Double digits organically.
-- -- 10%.
We happen to be in the better neighborhoods of Europe Northern Europe Scandinavia Germany we have a very strong presence in the Middle East and throughout Africa.
And were relatively under represented in Southern Europe so that's really what's what's helping us here we just happen to be in the right places in the.
Or -- every -- my shop and that's what my credit card I looked down at the hardware on -- on doing it and it more often than not says -- that's here in the US.
If you're north American business is predicted to be flat why is that.
No it was flat this last quarter.
A year ago there was a compliance deadline that -- most retailers had to make so we had a spike in revenue starting in late ten through.
Last summer we've now anniversaried I don't know we've predicted -- double digit revenue growth in North America in Q3 Q4 this year okay so -- -- to be corrected it was a copy issue you say that made a flat now but you look expected lead to better numbers for Q3.
Let's talk about the business here especially as you head into the Olympics because.
The last couple times that you've been on that you've talked about how you were getting into some 9000.
Cabs in London.
-- got 4000 I think installed 9000 signed on but now you're also getting -- deal with sky TV which is by the way part owned by News Corp.
our parent company.
To put the video inside those cabs with the -- net.
Verifone net of tax CTV right and that's how what are you gonna have on there I -- Fox Business updates.
I'm mark it up in ordered.
Do in order to capture the the writer's attention he can't just advertise to them you have to have.
New stories entertainment stories pop culture sports etc.
and that's the sort of stuff that will be.
Broadcasting in those 9000 cabs in addition to -- to paid advertising which is a great.
Revenue source for Verifone and how much money will you get each time somebody swipes and a cap.
We get a small percentage of the of the total fair.
-- PayPal deal requires.
Some pretty good stuff here I mean I think PayPal is constantly upgrading the hardware every time they have some new upgrades.
That analyst it will be very positive for you how so.
Well PayPal.
As cleverly.
Decided to use the existing infrastructure that largely is veriphone across the US to roll out.
PayPal in store and that requires software upgrades -- by us not hardware upgrades.
And since we have the lion's share of US storefronts as you mentioned earlier we're gonna be able to happen have them hit the road.
Hit that hit the ground running here with with the whites and widespread deployment.
From one -- And to Mongolia from Cambodia to Canada you guys are are getting into some pretty far reaching places good to see you Doug thank you for joining us.
-- -- Doug -- sure on -- saying that -- you have to look at how -- US dollar has gotten and that's why the Q3 numbers have been tamp down just a bit we will watch them closely to see if he's able to surprise.
