RE:RE:RE:RE:RE:DIV SP took a hit poor results of AM My apologies. I guess I should have said: "AIR MILES® reward miles issued decreased by 5% in the fourth quarter due to reduced promotional activity, no additional consideration will be payable by DIV to Aimia Inc. for the AIR MILES® royalty" instead of saying "DIV stopped promoting AirMiles so they wouldn't have to pay Aimia any more than they already have for the royalties." I may not be an expert, but at least I don't have blinders on.
murrarms wrote:
I'll remind you of your quote.
That is not good news for Aimia. DIV basically stopped promoting AirMiles so that they wouldn't have to pay Aimia any more than they already have for the royalties. You are correct you are not an expert.
yggdrasilll wrote:
I'm not accusing anyone of anything, I'm rephrasing the article you posted. See the bolded lines:
murrarms wrote:
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.
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