DALLAS, June 08, 2022 (GLOBE NEWSWIRE) — Loyalty Ventures Inc. (LYLT), a leading provider of data-driven consumer loyalty technology solutions, today provided an update on its program developments AIR MILES Reward (“AIR MILES MILES”).
The company disclosed that its segment of the AIR MILES Reward Program and AIR MILES sponsor Sobeys were unable to match extension terms; therefore, Sobeys has notified its intent to exit the program region by region, beginning with Atlantic Canada, between August and the first quarter of 2023. Management is confident in AIR MILES’ ability to convert this development into a growth opportunity in the medium term.
Charles Horn, Chief Executive Officer, said, “Metro, our long-time sponsor of AIR MILES, remains committed to the AIR MILES Coalition and will continue to welcome the millions of customers who shop and redeem at their stores where the Program AIR MILES reward is offered. offered, namely Ontario, the most populous province in Canada. Metro intends to work closely with AIR MILES to continue to offer the best value to its customers in their grocery stores or pharmacy in order to accumulate and redeem their AIR MILES reward miles with from Metro. Additionally, AIR MILES will have the ability to expand into adjacent vertical markets, including mass merchants, convenience stores, dollar stores and other retailers that were previously excluded by the terms of the Sobeys contract. We are in active discussions with grocers as well as with vertical markets that were previously inaccessible to us. »
The Company anticipates that the primary impact of this development in 2022 will be on the number of AIR MILES reward miles issued, as Sobeys represented approximately 10% of Loyalty Ventures’ adjusted EBITDA in 2021. Given the uncertainty associated with the timing of the transition from Sobeys’ additional regions and currency and program timing issues often associated with its BrandLoyalty business, Loyalty Ventures will reassess its 2022 revenue and EBITDA guidance when there is more clarity, which management hopes to have when it releases its second-quarter results.
Meanwhile, AIR MILES is moving forward with its programs to increase consumer engagement through investments in the AIR MILES App and improving the Collector Value Proposition in-store and online. For sponsors, AIR MILES’ capital investment enables expanded access to data, better personalization of content and accelerates the development of its media platform. The recent renewal of our five main sponsors, American Express, was an important vote of confidence, and we look forward to more positive developments in the months ahead. Additionally, AIR MILES continues to expand the Collector value proposition and add highly sought-after brands to airmilesshops.ca, the online shopping portal where consumers can earn miles by shopping at hundreds of stores online. popular line, including Amazon, Samsung, Sephora, Uniqlo and Suite. This reflects the success of our strategy to introduce more flexible models to bring value to both collectors and brands.
About Loyalty Ventures Inc.
Loyalty Ventures Inc. (LYLT), an S&P SmallCap 600 company, is a leading provider of technology and data-driven consumer loyalty solutions. We help partners achieve their strategic and financial goals, including increasing consumer basket size, buyer traffic, frequency, digital reach, and improving program reporting and analytics.
We help financial service providers, retailers and other consumer-facing businesses create and increase customer loyalty across multiple touchpoints, from traditional to digital, mobile and emerging technologies. We own and operate AIR MILES® Reward Program, Canada’s most recognized loyalty program, and Netherlands-based BrandLoyalty, a global provider of targeted, tailored and campaign-based loyalty solutions for grocers and other high-frequency retailers.
Through our AIR MILES Reward Program, AIR MILES Collectors earn AIR MILES from over 300 top Canadian, global and online brands and at thousands of retail and service locations across the country. This business powers an unparalleled data asset which, combined with world-class analytics and marketing capabilities, enables clients to accelerate their marketing activities and their return on investment. AIR MILES offers Collectors the flexibility and choice to use AIR MILES on aspirational rewards such as merchandise, travel, events or attractions or, instantly, in-store or online, through AIR MILES Cash at Locations participating partners. For more information, visit: airmiles.ca. After celebrating the issuance of its 100 billionth thousand in 2021, AIR MILES invites Canadians to visit the Program on Facebook, Instagram and Twitter.
BrandLoyalty delivers winning loyalty campaigns by connecting high-frequency retailers, brand partners and buyers. BrandLoyalty is changing buyer behavior in high-frequency retail around the world, both transactionally and emotionally. Find out more via brandloyalty.com or at LinkedIn and Youtube.
More information about Loyalty Ventures can be found at loyaltyventures.com.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our expectations or predictions of future events and can generally be identified by the use of words such as “believe”, “expect”, “anticipate”, “estimate”, “intend”. to”, “project”, “plan”. ,” “likely”, “may”, “should” or other words or phrases of similar significance. Likewise, statements that describe our business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make and advice we give regarding our expected operating or financial results and future economic conditions. , including but not limited to changes in geopolitical conditions, currency exchange rate fluctuation, market conditions and COVID-19 or other impacts related to reduced demand or customer changes , supply chain disruption in regards to our rewards, disruptions in the airline or travel industries, and labor shortages due to quarantine.
We believe our expectations are based on reasonable assumptions. Forward-looking statements are, however, subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurance can be given that our expectations will turn out to have been correct. These risks and uncertainties include, but are not limited to, the factors set forth in the Risk Factors section of (1) our Form 10-K for the most recently completed fiscal year and (2) any updates in item 1A, or elsewhere, in our quarterly reports on Form 10-Q filed for periods subsequent to this Form 10-K or any update thereof. Our forward-looking statements speak only as of the date they are made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unforeseen or other circumstances.