Points.com Hums Along With Growth Despite a Narrow Business Base
Skift Take
Points.com is still too dependent on its mainstay business of loyalty currency swaps for just a few major travel suppliers that are primarily in the U.S. Hopefully, its new cross-marketing deal with Amadeus will help.
Points.com, the reseller of airlines and hotels points, reported gains in revenue and profit in 2018 thanks to resilient economies in its key markets.
Last year Points revenue rose to $376.2 million, up 8 percent, year-over-year. Net income rose 130 percent, to $7.79 million, year-over-year.
Yet the growth came primarily from the Toronto-based company's legacy, flagship business, and only a few partners contributed to much of its revenue.
Last year, Points generated 94 percent of its revenue from services related to loyalty currency sales, such as helping travelers swap points and miles between programs.
The corporation's three largest, though unnamed, customers for this service represented 70 percent of the company's total revenue, according to earnings-related financial filings released on Wednesday.
Friends of Points might call the customer concentration statis
