Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$ADS' revenue edged up 1% to $1.91Bil and EPS rose 18% to $4.20 in 3Q17, partly helped by the normalization in credit quality. Net income rose to $233MM from $208MM a year ago. Also during the quarter, adjusted EBITDA increased 7% to $550MM, while core EPS jumped 13% to $5.35.
$ADS, a provider of loyalty and marketing services, has logged a 13% growth in average receivables at $15.7Bil in its Card Services segment for the month of Aug, 2017. While the net charge-offs stood at $84.1MM, the delinquency rate was 5.3% for the month.
$ADS has increased its stock repurchase program for 2017 by $500MM, which will result in an aggregate authorization of up to $1Bil. The company also extended the term of the repurchase to July 31. The repurchase will be financed primarily through free cash flow. Alliance expects to maintain moderate levels of debt during the course of the program.
Epsilon, an $ADS company, expanded its long-standing relationship with Volvo Car USA (VCUSA). Epsilon has worked with VCUSA on customer relationship management and retail assignments since 2009. Epsilon will develop and execute data-driven direct and digital marketing programs focused on owner loyalty and service retention.
The card services unit of $ADS has signed a multi-year agreement to provide private label credit card services to duty-free jeweler Diamonds International. As per the deal, Alliance will implement a customized, multi-channel credit program for Diamonds, designed to help deliver rapid approvals, incremental sales and increased transaction size.
$ADS currently has about 1,300 associates in India and the target will be to grow this within the Epsilon division. The company does not expect to see EBITDA margin expansion from this currently but it allows $ADS to be more price-competitive on its core Technology Platform offerings. $ADS expects it to help grow revenue and sustain EBITDA margin.