Initial 2008 Financial Guidance: - Record revenue in the range of $65-$75
million - Positive EBITDA and significant EBITDA growth over 2007 -
Transaction volume to grow to more than 15 billion miles/points
2008 Business Objectives: - Continued growth in new partnerships and shift
to principal-based deals - Expansion of Book With Points, AirIncentives and
GPX programs
TORONTO, Dec. 12 /PRNewswire-FirstCall/ - Points International Ltd.
(TSX: PTS; OTCBB: PTSEF), the world's leading loyalty reward solutions
provider and owner of the Points.com portal, today provided initial
guidance for 2008 and announced the upcoming launch of the beta version of
its Global Points Exchange (GPX). Points expects that 2008 revenue will
more than double over 2007 to the range of $65-$75 million, and that it
sees significant expansion of positive EBITDA above 2007 levels.
"2007 has been a breakout year for Points as we experienced record
transaction volume across our platform, transacting more than 10 billion
miles and points. We also shifted a number of key partnerships to a
principal-based model that offers substantial benefits to our partners and
enables us to be more actively involved in the success of our products. We
are forecasting dynamic growth for 2008 as we focus on adding new partners,
selling additional products into our current base and expanding our Book
With Points and AirIncentives programs," said Rob MacLean, CEO of Points.
"Many of the world's largest travel companies and marketers are
benefiting from Points' industry expertise to create unique programs to
drive revenue and provide monetization options for their best customers. We
expect that our transaction and audience growth in 2008 will enable us to
continue to drive innovation and create new products for the loyalty
industry globally," added Mr. MacLean.
Points also announced that the public beta launch of its Global Points
Exchange (GPX), the world's first peer-to-peer mileage and points
marketplace will begin early next week. In this initial phase of the
product, users visiting http://www.points.com can actively transfer their frequent
flyer miles between five different programs, including American Airlines
AAdvantage, Alaska Airlines Mileage Plan, Aeroplan, Frontier Early Returns
and IcelandAir Saga Club Rewards points. The exchange is designed to create
more customer engagement in these leading frequent flyer programs and to be
a very user-driven experience. For the first time ever, user-driven trading
between loyalty programs is allowed, with trade rates being set by users.
"Last year, the Economist estimated that the total retail value of all
the miles in frequent travel program accounts worldwide was more than $700
billion, making airline miles and hotel points the world's most valuable
currency," said Christopher Barnard, president of Points. "We are delighted
to partner with our launch partners to offer a completely new way for
frequent flier customers to manage this valuable asset much like they are
able to manage their other financial assets. GPX offers a unique,
community-based approach to facilitating this secondary market that also
represents significant economic potential for our participating partners.
This is only the beginning for GPX, as we have a detailed rollout plan for
throughout 2008 that will encompass the inclusion of new partners, new
features, and a strategic marketing program."
"Throughout 2007 Points has done a superb job of executing and
refocusing the business solutions side of its operations around the
principal model, resulting in 2007 growth of more than 100% over our
original guidance. We expect that transaction volume will increase more
than 40% in 2008 to more than 15 billion miles/points and drive significant
financial growth. The company boasts a unique combination of proprietary
technology and an ability to productize solutions that deepen its partner
relationships. Its financial results and outlook are predicated on many
years of hard work that is a direct reflection of the quality and energy of
Rob, Christopher and the Points leadership team. We believe that we are
experiencing only the beginning of long-term growth for Points," said Steve
Bannon, Chairman of the Board.
Conference Call Information
Points' management will host a conference call for analysts and
investors at 8:00 a.m. Eastern Time on Wednesday, December 12, 2007 to
discuss the information in this press release. To participate in the
conference call, analysts and investors from the US and Canada should dial
(800) 219-6110 ten minutes prior to the scheduled start time. International
callers should dial (303) 262-2130. Points International will also offer a
live and archived webcast of the conference call, accessible from the
"Investor Relations" section of the company's Web site at
https://www.points.com/static/corporate/investor_overview.html.
About Points International Ltd.
Points International Ltd. is the owner and operator of Points.com, the
world's leading reward-program management portal. At Points.com consumers
can Swap, Earn, Buy, Gift, Share and Redeem miles and points from more than
25 of the world's leading reward programs. Participating programs include
American Airlines AAdvantage(R) program, American Express(R) Membership
Rewards(R), Aeroplan(R), AsiaMiles(TM), Cendant TripRewards(R), Delta
SkyMiles(R), Gold Points Reward Network, InterContinental Hotels Group's
Priority Club(R) Rewards, and S&H greenpoints. Redemption partners include
Amazon.com(R) and Starbucks.
Safe Harbor Statement
This press release contains or incorporates forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
as amended, and forward-looking information within the meaning of the "safe
harbour" provisions of applicable Canadian provincial securities
legislation (collectively "forward-looking statements"). These
forward-looking statements relate to, among other things, our guidance for
2007 with respect to revenue, EBITDA, and our objectives, strategic plans
and business development goals and may also include other statements that
are predictive in nature or that depend upon or refer to future events or
conditions and can generally be identified by words such as "will", "may",
"expects," "anticipates," "intends," "plans," "believes," "estimates" or
similar expressions. In addition, any statements that refer to
expectations, projections or other characterizations of future events or
circumstances are forward-looking statements. These statements are not
historical facts but instead represent only Points' expectations, estimates
and projections regarding future events.
Although Points believes the expectations reflected in such
forward-looking statements are reasonable, the forward-looking statements
are not guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. Undue reliance should not be
placed on such statements. Certain material factors, assumptions or
estimates are applied in making forward-looking statements. Known and
unknown factors could cause actual results to differ materially from those
expressed or implied in such statements. Important factors that could cause
actual results to differ materially are referred to in the body of this
news release and also include the risks and uncertainties discussed herein,
the matters set forth under "Risks and Uncertainties" contained in Points'
Annual Information Form filed with applicable securities regulators and the
factors detailed in Points' other filings with applicable securities
regulators, including the factors detailed in Points' annual and interim
financial statements and the notes thereto. Readers of this press release
are cautioned that forward-looking statements are not guarantees of future
performance.
Points does not undertake any obligation to update or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of this news release or to reflect the
occurrence of unanticipated events, except as required by law. All dollar
amounts are in Canadian dollars unless otherwise specified.
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