Alliance Data Systems Corporation (
- Snapshot Report
has extended its ties with Bank of Montreal (
- Snapshot Report
. As per the long-term agreement, Alliance Data’s Canadian loyalty business will continue to sponsor the AIR MILES Reward Program as Bank of Montreal issues reward miles in the Canadian coalition program.
Though the terms and conditions of the agreement were undisclosed, renewal was based on terms of the previous agreement. This agreement will entail Bank of Montreal to continue to gain from Canada's distinguished rewards program in the coming years.
Customers of Bank of Montreal can have AIR MILES reward miles credited by availing BMO products, offers and services as well as purchases made with a BMO credit card or within BMO AIR MILES Banking Plan or on special offers on investments and lending.
Alliance Data and Bank of Montreal have been working together for over two decades. The companies have added value to customers as well as searched for opportunities to boost new issuance.
The company consistently seeks strategic opportunities to stimulate its Canadian coalition loyalty business. Recently, it inked an agreement with General Motors of Canada Limited to issue AIR MILES reward miles during key promotional periods for new vehicle purchase and leases at Canadian dealerships. These efforts might help revive AIR MILES reward miles issued that declined 1% in the third quarter of 2012.
Alliance Data is scheduled to release its fourth-quarter and full year 2012 earnings results on Jan 31, before the opening bell. The Zacks Consensus Estimate for the fourth quarter is $1.32 per share, down 31.8% year over year. The estimate for 2012 is pegged at $7.51 per share, up 7.7% year over year.
Alliance Data carries a Zacks Rank #3 (Hold).
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