Alliance Data Has Solid, If Unspectacular, Second Quarter

Alliance Data Systems Corp. generated second quarter revenue of $507.2 million, up from $81.8 million a year earlier. The company’s earnings jumped from $73.1 million to $81.7 million. The quarter ended June 30.

The company’s Loyalty Service unit generated $200 million in revenue, a 31% increase over second-quarter 2007’s results which was attributed to double-digit growth in both Air Miles reward miles issued and Air Miles reward miles redeemed.

Alliance’s Epsilon Marketing Services division generated $115.4 million, a 5% growth over second-quarter 2007’s level. But a statement from the company noted that year-to-date revenue growth increased by a double-digit percentage.

The Private Label Services, which provides processing, high-end customer care and marketing programs associated with its roughly 90 card-based programs, increased year-over-year operating revenue by approximately 5% to $95.8 million. Its key revenue driver -- private label statements generated -- declined 9% during the second quarter as compared to the prior year period. The quarter’s results were affected by the loss of Lane Bryant as a client.