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February 13, 2014

Higher One profits fall on higher costs

New Haven’s Higher One Holdings, which provides financial and analytics tools to universities, said its fourth-quarter net income fell 48 percent, mainly due to higher operating expenses.

The company booked $6.3 million in profits, or 13 cents per diluted share, down from $12.1 million, or 22 cents, a year ago.

The decline came in spite of a 13.7-percent jump in revenue (to $56.6 million) and was the result of higher marketing and administrative costs. The prior-year quarter also included a $6.9 million benefit in operating costs from merger and acquisition activity.

The trend for the full year was the same for Higher One: Revenue increased and profits fell.

The company booked $14.1 million in annual profits on $211.1 million in revenue compared to $36.9 million on $197.7 million in 2012.

A $16.3 million legal settlement in 2013 — as well as higher costs— was a major reason for the decline in profits.

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