Low-spending bureaucrats reduce Diners Club profit
A reliance on low-spending government accounts reduced total spending, revenues and thus profit at Diners Club during 2005.
The charge card group reported a profit of $23.4 million during the year to December 2005, down by 14 per cent from $27.3 million in 2004. Turnover fell by four per cent to $4.7 billion over the year. Diners Club said that turnover decreased “mainly due to a change in portfolio mix, with lower spending government accounts representing a higher proportion of accounts.”