Alliance Data Systems Corporation ( ADS ) has extended its
ties with Bank of Montreal ( BMO ). 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.ALLIANCE DATA (ADS): Free Stock Analysis ReportBANK MONTREAL (BMO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
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).