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| Monday, May 18, 09:08:31am | [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, [5], 6, 7, 8, 9, 10 ] |
| Subject: Visa have paid 0.25 USD (annual fee for loyalty activation) for 5m cards with 13m issued | |
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Author: Mike Howe(CEO)(phone linked to meeting):We have one global top 20 retailer - we are in negotiations with another and we expect to conclude those negotiations very soon. |
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Date Posted: Thursday, March 27, 12:42:21pm In reply to: and to go with Visa--at the time of writng this appears correct 's message, "The Catuity Common business model has always been with an American focus" on Saturday, February 15, 06:47:28pm pourquoi5 (ID#: 224751) Catuity's Recurrent Revenue Stream:EGM 27/3/03 11:15:17 PM 6168697 « Previous Message Next Message » Some comments from the EGM held yesterday which I have heard.Note the MacSmith annual fee reference((0.25c per card activated payable on 5 million bundles).Pretty sizeable annual revenue stream ongoing-and just one source of revenue.And fixed cost base is handy too.Then note Catnap's post which appeared a month or so ago(reprint below for ease of reference-thanks Catnap)).His information was pretty close to the mark.I look forward to another retailer jumping on board.Mmmmm-this company doesn't deserve a paltry $A 28 million market cap-anyway those substantial holding funds have seen the writing on the wall: The Meeting Mike Howe(CEO)(phone linked to meeting): We have one global top 20 retailer - we are in negotiations with another and we expect to conclude those negotiations very soon. Revuenue growth last year was 47% and he expected the growth to gather pace and that VISA/Target had been very slow and he expected that the cycle for more customers would be shorter now that VISA/CAT had the experience under their belts. Target rollout goes on with a 30/40 out of 1,100 stores trialling the system.Target had problems with some terminals but have sorted that out. Target/VISA have asked for additional functionality in another release of the software which is on track and is expected to be part of the launch . Macsmith(Chairman): Visa have paid 0.25 USD (annual fee for loyalty activation) for 5m cards with 13m issued This revenue was recognised when VISA signed off on acceptance of the CAT software - with no recourse. The CAT cost base is fixed at $6.0-$6.5m USD per annum About 50% of revenue is "services" - consulting, integation and customisation. CAT gets paid for the remaining cards when > 5m cards are activated. Catnap's Post: "Licence revenue is from the first 5 million customers signed up under the Target/Visa smart loyalty programme. Target announced that it currently had 9 million customers at present. Once it goes past 10 million, Catuity will get a further US$2M [US 40 cents per card]. When the cards are activated at the shops, Catuity will commence getting US4 cents per loyalty transaction. I would assume that management has been very conservative in its budget of how much it will receive from this, perhaps only one transaction per customer per month. This would equate to A$7.2M over a full year assuming all initial 9 million customers use the programme. Obviously, Target is focusing on its best customers first and hence one transaction per month could be very conservative. Either way, by June 2003, I suspect we will be on our way to consistent revenue growth...month by month with a tight reign on costs. Catuity has already re-deployed staff previously working exclusively on the Target account to other customers. It is well worth watchers of this space to go back to the PreVision announcement and its customer base to gauge the next cabs off the rank." (end of Catnap Post) Pre-Vision Annopuncement: Ahold, Hallmark, Sears Portrait Studios, Keds, Toys 'R' Us and Talbots, among many others. Worth noting from those retailers that TOYS R US issues a (normal)Chase Visa Card with a rewards program.Wild guess but Mike Howe comment + Catnap =Toys R Us goes smart. Cheers PQ « Previous Message Next Message » This message has been viewed 18 times Report a BullBoards Violation Ignore pourquoi5 Post Reply View Threads [ Next Thread | Previous Thread | Next Message | Previous Message ] |
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| Breaking News:Catuity Lands Mastercard | It is in the 10-K filed overnight.Extract below: | Monday, March 31, 05:32:46pm |