Global Payments to Take $130 Million Charge Related to Russia
Payments solution provider can no longer move money in Russia.
May 3, 2022
Global Payments (GPN) says a second round of sanctions has forced it to sell its Russian operations. While the company believes it was in compliance with sanctions for financial institutions at the end of the first quarter, Global Payments says new sanctions levied in April 2022 made operating there impossible.
Within the past month, Global Payments says it has sold its merchant business in Russia. Though preliminary, the company expects to recognize a $130 million charge in the second quarter of 2022 associated with the sale and recognition of accumulated foreign currency translation loss.
The ruble aside, Global Payments is one of the first companies we’ve seen explicitly quantify the impact of the recent run up in the U.S. dollar. In the quarter ending March 31, 2022, Global Payments said currency exchange rate fluctuations reduced revenue by $14.7 million and operating income by $4.7 million.
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