January 27, 2011 / 11:43 AM / 7 years ago

UPDATE 2-Points Int'l sees 2011 revenue up; plans reverse split

* Sees 2011 rev at $120-$130 mln

* Cuts 2010 EBITDA margins to 3-3.5 pct

* Plans 10-to-1 reverse split of shrs

* Says applied for Nasdaq listing (Recasts; Adds details, analyst comment, share movement)

Jan 27 (Reuters) - E-commerce and technology services provider Points International Ltd (PTS.TO) expects 2011 revenue to jump more than a fourth, helped by its core segment, sending its shares up as much as 9 percent.

The company, which operates the website points.com, sees its Loyalty Currency Services to fuel 2011 revenue growth.

In this segment, the company distributes discount points to third parties to use as customer or employee incentive.

The Toronto-based company, whose shares also trade over the counter in United States, said it plans to consolidate every 10 shares into one and has applied to list its common shares on Nasdaq.

The company forecast 2011 revenue at $120-130 million, above its 2010 estimate of $95 million, which is at the top end of its outlook of $85-$95 million.

The firm, whose partners include British Airways, Virgin Atlantic, StarBucks (SBUX.O), also expects 2010 net income to increase “significantly” year-over-year.

The company, however, cut its 2010 earnings before interest, tax, depreciation and ammortization (EBITDA) to be around 3-3.5 percent from its earlier view of 3-5 percent.

Last April, the company had said 2010 EBITDA projections are being hurt by foreign-exchange volatility and increased expenses related to this year’s annual general meeting. [ID:nSGE63K0I7]

“The company is clearly passing through an inflection point and will deliver more stable and meaningful EBITDA going forward,” RBC Capital Markets said in a note to clients.

In the last two quarters the company has posted a profit as it was helped by higher margins and fall in expenses. [ID:nSGE6790K2]

The Toronto-based company’s shares were trading up 5 percent at 79 Canadian cents on Thursday on the Toronto Stock Exchange after touching a high of 82 Canadian cents earlier. They have gained more than 75 percent in the last one year. (Reporting by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair and Joyjeet Das) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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