Points International Ltd. reports 2004 second quarter results
Highlights include 26% revenue growth , over 5 billion cumulative points transacted
Toronto, August 10, 2004 - Points International Ltd. (TSX: PTS), operator of the only independent loyalty program currency exchange - at www.points.com - reported financial results for the second quarter of 2004.
“Points has continued to be successful in growing our business, improving our brand recognition and acquiring new partner relationships.” noted CEO Rob MacLean. “Relationships forged in Q2 and early Q3 include premier partners like Interval International, Starbucks, British Airways, Frontier Airlines, S&H greenpoints, KnowledgeFlow, ACCENT Training and Quantum Loyalty Solutions. Adding additional, world-class partners will continue to expand the breadth of the Points Exchange and make it a more valuable consumer proposition for a larger audience. Having recently passed the 5 billion mark of total points transacted, we are pleased that members of the worlds best loyalty programs are continuing to engage with our services.”
“Once again, our recurring revenues showed another quarter of strong growth. Points recurring revenues grew by 26% quarter over quarter and by 63% year over year. Excluding the impact of seasonal products, recurring revenue growth was 65% year over year and 41% quarter over quarter. While expenses grew in the quarter, much of the increase was attributed to increased marketing expenses associated with activity growth. Significant resources are being allocated to further enhance the customer experience at Points.com, and we look forward to introducing these innovative new services to our database of over 500,000 registered users and the Loyalty industry over the next 12 months.”
Second quarter highlights include:
• As at quarter-end, Points has powered the cumulative online exchange, sale and transfer of 4.9 billion points and miles, up from 3.8 billion at the end of the first quarter 2004 and 3.0 billion at 2003 year end. Cumulative points transacted increased to over 5.2 billion in July 2004.
• Points.com activity continued to demonstrate strong growth with 102% more points exchanged vs. Q1 and 74% more than in the same period in 2003.
• Transaction size exceeded 15,060 points per exchange down from 17,900 in the previous quarter as exchange volume increased.
• Revenue of $2.03 million for the second quarter of 2004 (2003 - $1.46 million), compared with revenue of $1.62 million earned in the first quarter of 2004. Points’ recurring revenues grew by 26% over the first quarter of 2004.
• General and administrative expenses were $3.10 million for the quarter (2003 - $1.71 million) and compared with $2.65 million in the first quarter of 2004. As Points continues to accelerate the marketing, branding and consumer functionality of the Points Exchange, general and administrative expenses in the third quarter are likely to be higher than the second quarter of 2004.
• Earnings (loss) before interest, amortization and other deductions (“EBITDA”) of ($1.07 million) for the second quarter of 2004 compared with ($1.03 million) in the prior quarter and ($252,887) for the same period in 2003.
• The period net loss increased to $2.15 million compared with $1.90 million in the prior quarter. The loss for the previous year was $1.28 million.
• Cash decreased to $18.43 million at quarter end, compared to $24.24 million in the prior quarter. Decreased cash is attributed to payments for the MilePoint Acquisition, decreased deposits and the period loss before interest, amortization and other deductions.
Management expects that the third quarter results will be released November 10 or 11, 2004. Additional financial and business metrics will be discussed in the Corporation’s Interim Management’s Discussion and Analysis and the unaudited consolidated financial statements.
About Points International Ltd.
Points operates the Points Exchange, the only independent loyalty points exchange - at www.points.com - allowing consumers to exchange points and miles from one participating loyalty program to another to achieve the rewards they want faster than ever before. The Points Exchange has to date attracted over 40 partners, including industry leaders eBay (Anything Points), American Airlines ( the AAdvantage program), InterContinental Hotels (Priority Club® Rewards), Air Canada (Aeroplan), US Airways (Dividend Miles), Alaska Airlines, (Mileage Plan), Delta Air Lines (Sky Miles), Imperial Oil (Esso Extra), British Airways, Starbucks, Fairmont Hotels & Resorts, Cathay Pacific Airways (Asia Miles), American West Airlines (FlightFund), JCPenney, GiftCertificates.com and many more.
Points` shares trade on the TSX under the stock symbol PTS. For more information, visit www.points.com.
CONTACT:
For investor relations:
Steve Yuzpe, CFO, Points International
(416) 596-6382, steve.yuzpe@points.com
For partnerships and other inquiries:
Christopher Barnard, President, Points International
(416) 596-6381, christopher.barnard@points.com.
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