Corpay lifts annual forecasts, to sell non-core UK vehicle payments business

Aug 5 (Reuters) - Business payments platform Corpay raised its full-year forecasts and reported higher second-quarter profit on Wednesday, helped by continued growth in its corporate and vehicle payment divisions.

Despite economic uncertainty and elevated interest rates, business spending held up through the April-June quarter, supporting demand for corporate payment and spend-management services like Corpay.

Here are more details: 

• On an adjusted basis, Corpay's profit for the quarter ended June 30 rose to $464.4 million, or $7 per share, from $366.4 million, or $5.13, during the same period last year.

• Quarterly revenue at the company's corporate payments business, which automates and manages vendor payments, rose 41.7% to $548.7 million from the year-ago period.

• The vehicle payments segment saw a 13.3% year-on-year rise in quarterly revenue to $580.2 million. Corpay's total revenue surged 21.8% to $1.34 billion.

• The company said it expects annual revenue between $5.29 billion and $5.33 billion, higher than its prior forecast of $5.25 billion to $5.33 billion.

• It raised its full-year adjusted earnings forecast to a range of $27.15 to $27.55 per share, compared with its earlier outlook of $26.30 to $27.10 per share.

• Separately, Corpay said it had agreed to sell its non-core U.K.-based vehicle payments business epyx, along with r2c Online and Business Gateway, to OEConnection as part of its efforts to simplify its portfolio and focus on corporate payments.

(Reporting by Rishab Shaju in Bengaluru; Editing by Diti Pujara)