DIV SP took a hit poor results of AM AIR MILES® Fourth Quarter Results
Maybe AIM knows what they are doing!
Copied and pasted.
AIR MILES® reward miles issued decreased by 5% in the fourth quarter due to reduced promotional activity, according to Alliance Data Systems Inc.’s (ADS”) news release dated January 25, 2018.
DIV expects to report that royalty income of $2.2 million was generated from the AIR MILES® licenses in the fourth quarter of 2017. Seasonally-adjusted, this is equivalent to approximately a $7.95 million annual run-rate royalty payment to DIV. If 2018’s actual results are in-line with this run-rate figure, no additional consideration will be payable by DIV to Aimia Inc. for the AIR MILES® royalty (which was acquired from Aimia Inc. in August 2017); furthermore, DIV’s royalty purchase price multiple will be approximately 6.8x.