UPDATE 2-Alliance Data boosts forecast for second time this year

Thu Jul 17, 2014 11:52am EDT
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* Raises FY forecast for second time in 2014

* Second-quarter core EPS $2.90 cents vs est $2.73

* Revenue at LoyaltyOne up 62 pct

* Shares up 3 pct (Updates share movement, background)

July 17 (Reuters) - Credit card processor Alliance Data Systems Corp bumped up its full-year earnings forecast for the second time this year after posting a better-than-expected quarterly profit, helped by strong sales in its customer loyalty programs business.

Sales at the unit, LoyaltyOne, jumped 62 percent to $355.6 million in the second quarter, accounting for about 28 percent of the total revenue.

Alliance Data's shares were up 1 percent at $278.09 midday on the New York Stock Exchange.

LoyaltyOne owns and operates the Air Miles Reward Program, one of the top loyalty programs in Canada.

The company's private-label credit cards business also performed well during the quarter.   Continued...