Dallas-based Alliance Data Systems reports that fourth-quarter revenue
declined slightly to $508 million. However, Q4 net income rose 53% to
$52 million driven by Loyalty Services and Epsilon Marketing Services.
Despite a 3% revenue decline, ADS notes it has completed 31 consecutive
quarters since its IPO of meeting or beating expectations.
Loyalty Services’ revenue increased slightly to $196 million, but was
dampened by the decline in the Canadian dollar. Epsilon Marketing
Services’ fourth quarter revenue was essentially flat at $129 million,
impacted by lower volumes associated with retailers who went bankrupt.
Private Label Services fourth quarter revenue increased 10% to $98
million. During the quarter, Epsilon signed Marriott as a new client;
Loyalty Services renewed Boston Pizza and Hudson’s Bay Company for “AIR
MILES”; and Private Label finished the year by signing its tenth new
program versus the typical annual total of five or six. ADS expects to
report 2009 revenue of approximately $2.1 billion and adjusted EBITDA of
approximately $680 million. For complete details on ADS’ latest results
visit CardData (www.carddata.com).
ADS REVENUE HISTORICAL
4Q/07: $522.0 million
1Q/08: $499.3 million
2Q/08: $507.2 million
3Q/08: $511.2 million
4Q/08: $507.6 million
* originally reported as $602.7 million