Monthly Archives: January 2013

2013
01/13

Category:
Revenue

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Medbox, Incorporated. Proclaims Earnings Statistics For Q4 2011

Medbox, Inc. Announces Revenue Figures for Q4 2008
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Posted: The month of january two, 2013
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2013-01-02T14: fifteen: 57Z
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2013
01/09

Category:
Revenue

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The Far East Mobile Muscle Groups Tencent Into Revenue Sharing Talks

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Just a few several weeks following telecoms heavyweight China Mobile phone (0941. HK; NEW YORK STOCK EXCHANGE: CHL) pertaining to which Web icon Tencent (0700. HK) had been taking their texting enterprise, have been getting phrase that this two companies might have started shares for an earnings revealing agreement to fix the particular argument. The far east Mobile phones discontent entails Tencents well-known cellular instant messaging service WeChat, better identified simply by its Chinese language brand Weixin, which has jumped to be able to prominence in the last 2 years and also just lately exceeded the actual 3 hundred , 000, 000 registered users tag. The actual support permits visitors to text your ex back review backwards and forwards over the Internet, permitting them to defend against traditional texting which is one of the biggest earnings sources regarding The far east Mobile phone and the countries other 2 huge telcos.

While I sympathise with China Mobile phone, I would personally also point out this is a rare case the location where the telecommunications regulator should step up as well as make clear the problem rather than making Tiongkok Cellular make use of its dominant market position to make Tencent in to this type of revenue discussing agreement.

Just before We get further, lets take a glance at the particular information, that has an official from the business regulator, the actual Ministry of Business and It (MIIT), expressing the two companies have recently entered talks to resolve China Mobiles unhappiness with the existing scenario. The standard procedes to describe which Tencent today just provides a small percentage regarding The far east Cell phones earnings, but which customers associated with Tencent applications like WeChat now are the cause of 30 per cent of knowledge traffic more than Tiongkok Cell phones network.

If people numbers are very correct, the no real surprise which China Cellular is not satisfied regarding the fact that its mobile Internet community is being utilized as a result seriously through Tencent. But somebody must also point out to China Mobile phone that the not the only company whoever systems are being heavily used by Tencent, and the countries additional 2 telcos, The far east Unicom (0762. HÄSTKRAFTER; NEW YORK STOCK EXCHANGE: CHU) as well as Tiongkok Phone system (0728. HÄSTKRAFTER; NYSE: CHA), are most likely finding comparable use designs.

This underscores the point that Tencent is very effective at developing popular Web goods, especially in the social networking space, that is the reason why it has become Chinas dominating Web company within the last a few yrs. The no coincidence which Tencents the true market value now stands from nearly US$60 billion, approximately corresponding to each of the countrys other Net firms put together. The also simply no chance which Tencent currently is being sued inside a Guangdong court more than the increasingly monopoly-like status through Web protection software program creator Qihoo fish hunter 360 (NYSE: QIHU).

So now enables come back to the initial point, which was whether China Mobile should be able to bully Tencent in to a revenue discussing agreement. That is essentially exactly what China Mobile is attempting to accomplish simply by without fault intimidating to block WeChat as well as other Tencent programs from the cell phone system used by two-thirds associated with Chinas mobile phone subscribers.

Im sure which some other similar earnings discussing agreements are present in the world, as well as The far east Mobile phone currently had one particular arrangement with a counterfeit company to provide similar text messaging services over the program called Fetion, or Feixing found in China. But this sort of frightening to block a service driver just because which driver is very effective looks a lot more like anti-competitive behavior, and I would certainly strongly suggest that the MIIT easily step up to be able to clarify the situation to ensure that both of these sides can function out there their own distinctions. I recommend the actual regulator technically prohibit telcos like Tiongkok Cell phone coming from forestalling Web sites that are performing nothing at all unlawful. Doing this, The far east Cellular might still get the deal this desires, but it will have to pursue the talks by offering rewards to Tencent as opposed to making dangers.

Important thing: The particular telecommunications limiter should part of to be able to prohibit China Mobile phone by simply using its market prominence of winning any revenue-sharing deal with Tencent.

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2013
01/09

Category:
Revenue

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Macau Gaming Income Visits Report $38 Bn This Year

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HK — Macau’s gaming earnings leaped thirteen. 5 percent into a record $38 billion dollars this year, official figures revealed Wednesday, despite the pace of development in the world’s biggest video gaming centre delaying from the yr previously.

Video gaming income increased in order to 304. 14 billion patacas from 267. 87 million patacas in 2011, according to stats submitted to the state Video gaming Examination and also Coordination Institution website.

But the pace associated with growth slowed down through 2012, when income surged 44 per cent year-on-year in order to $33. 47 million, since China’s economic climate slowed as well as impacted the particular landmass Chinese language high-rollers who flock to the gaming tables within Macau.

Despite that, experts said Macau’s better-than-expected Dec gaming earnings — which usually flower 20. 6th percent year-on-year to 28. twenty-four billion dollars patacas — recommended any recovery was in sight.

This specific when compared with a 3. 2 % year-on-year development inside April and 8. nine percent inside November

“The strong Dec (performance) represents a recovery inside gaming revenue growth”, Aaron Fischer, head of buyer and also video gaming investigation in brokerage CLSA, advised AFP.

Fischer stated the actual brokerage got forecast earnings would continue develop at a moderate nine. zero per cent within 2013.

“However, along with preliminary indications of macro-economic recuperation inside The far east, facilities improvements and a much more stable political atmosphere, our own current gaming income approximation may seem to be about the conventional side. “

The former Costa da prata colony, the only portion of China where casino playing is legal, overtook Vegas because the tour’s video gaming funds in terms of income following your sector was opened to be able to foreign competitors inside 2002.

The actual boom holds inside sharpened contrast to be able to US sites like Las Vegas, earlier any byword regarding gambling but that is right now enduring the effects of the worldwide recession.

However the higher development has also caused the actual Chinese as well as Macau governing bodies to express problem about the city’s gambling-dependent economic system.

Six companies tend to be certified to use sites inside Macau, that was passed back to Beijing in 1999, and have transformed the particular Cotai Strip, the gotten back swamp, into a shining center with regard to gamblers.

Rettighed © 2013 AFP. Just about all rights set aside.
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2013
01/08

Category:
Revenue

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2012 Card Industry Revenue – A Continuing Downtick

During the past several years card issuers have dealt with new regulations which curtailed their business models, impacting their interest and fee income strategies.  As a result, in 2012 top line revenue for the card industry in the RK Hammer card issuer model was reported at $149.6 Billion, down $5.3 Billion from the previous year.  Some banks showed marked revenue improvements last year, but those exceptions were primarily due to key acquisitions, as opposed to “organic” year-over-year growth.

Company Chairman and CEO Bob Hammer reported that “Regulation and legislation have affected every portfolio revenue variable:  including total revenue, interest income/fee income split, thus seeing  issuers respond by assessing new fees and repricing existing fees, where permissible.  Card regulation and legislation have been top of mind not just for credit card, but debit card, too, with the interchange transaction fee cap.  The CFPB has yet to catch its stride, so even more regulation will be on the horizon.

“The silver lining for credit card is that the previously troublesome levels of consumer bankruptcy and charge offs have now normalized to more manageable levels,” Hammer notes.  He adds that “some clients have charge offs returning to the 4% range, while others are still hovering well above 7%.” There is clearly no unanimity in how the card business has fared after four years of very difficult economic times and sweeping new legislation.  While the year may have ended at around 5% gross charge offs for some, the full year “blended” for the industry is still higher in our model, closer to 6%.”

“With all the changes on the revenue side, as with last year many issuers are still looking at opportunities on the expense side, not the least of which is operating expense, with the highest expense item being staff and benefits.  We find that few of the major issuers have added net new staff; indeed, many have recently off-loaded some key positions to Singapore, Brazil, and India, where outsourcing is still going strong.”    Again the focus remains, “If we’re getting nailed on our top line revenue, we will necessarily have to focus more on what we can still have some internal control: operating expense/staffing.  To illustrate, banks have forecast upcoming job cuts of over 160,000”.

For a more complete run down on the revenue and expense streams for the card business in the last twelve to twenty four months, go to:  www.cardknowledgefactory.com, the research and analysis division at RK Hammer, for a listing of updated research reports available to issuers and investors on this and other subjects in their 2013 edition.

More about Card Knowledge Factory(TM) at RK Hammer

A leader for over two decades in virtually all phases of credit card portfolio management, RK Hammer expanded their research and analysis division with the implementation of the Card Knowledge Factory(TM) last year.  It offers instant access to timely reports and insightful analysis, much more efficiently and effectively than internal issuer research alone.   Hammer also serves as an expert witness for issuers in litigation, brokers card portfolio deals, and conducts valuations for Boards, as well as interim card portfolio management. 

2013
01/06

Category:
Revenue

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Lure of Easy Revenue Can Distract Banks from Strategic Risks

Banks are struggling with macro headwinds and regulatory changes that have structurally changed their value proposition. They face continued slow growth, margin pressure and higher regulatory-related expenses.

Many banks are unable to earn sufficient returns on equity to cover their cost of equity. Consequently, valuation multiples remain depressed. Institutions are searching to diversify revenue sources to reduce vulnerability to a prolonged downturn affecting their profitability.

Federal Reserve actions since 2007 have neutered the old spread profit model with near zero interest rates. This is expected to extend into 2015. The expectation has compressed margins and destroyed deposit franchise values. Value is no longer just in the deposit base. It has moved into the ability to grow assets and deliver more products to existing customers. Also, profitability has shifted to consolidation instead of organic growth.

This development gives rise to increased strategic risk. Strategic risk concerns an institutions long-term ability to survive due to the incompatibility of its strategy and resources with industry changes. There are numerous examples of unnoticed fatal strategic risk. Examples include Lehman Brothers, MF Global, WaMu and Wachovia. These institutions failed to consider risk as an input into strategy. Rather, it became an unintended consequence because it is not initially reflected in the income statement. Furthermore, their strategies were inflexible. They were designed only to work in the then-existing state of world. When that state changed, they were unable to adjust.

Strategic risk is likely to increase as banks search for new revenue sources. Some may be tempted to gamble for redemption by expanding into risky areas in which they lack the skills to manage.

The basic problem is management targets return not risk. The traditional response to a declining core business is to take more risk in the pursuit of nominal income. Return, however, is where risk is located. This leads to a vicious circle of herding into current popular areas like equipment leasing, commercial and industrial loans and wealth management with a predictable erosion of margins and underwriting standards. An escalation of commitment usually follows.

A framework is needed to manage the risk profile inherent in strategy and business model changes consistent with an organizations risk tolerance and capital structure. The board of directors needs to set the strategic direction, risk tolerance and then monitor management to ensure they follow the boards wishes.

A key component of this framework is to improve the profitability of the legacy business lines. Otherwise, resource demands will expose the bank to new risks it is unable to manage. You cannot transform fast enough to offset the continued deterioration of your historical core business units. This would involve shrinking these businesses to a defensible core based on the institutions identifiable competitive advantage.

Evaluating new strategic initiatives starts with the review of new markets the bank seeks to enter. The bank needs an identifiable competitive advantage to succeed against expected competitors. If you cannot beat them, then why join them?

A realistic risk assessment is also required of the risks the bank is willing and able to accept in the pursuit of its strategic initiatives. Next, a capital plan is required to raise the capital to fund the new risk exposure and be compatible with regulatory expectations. The institution also must ensure that it has the necessary skills to manage the risk involved. Finally, capital must be allocated to business units consistent with risk and strategic considerations.

Strategic risk management demands the involvement of active board of directors. This involves balancing the need for managerial experimentation grounded in facts against delusional adventures. They must pay particular attention to large scale transformational changes not based on identifiable competitive advantages. Such actions usually contain hidden exposures to remote risk.

2013
01/06

Category:
Revenue

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Small banks, credit unions say debit card revenue down after reforms

Community banks and credit unions are reporting lower debit card processing revenue as a result of financial reform laws, sparking concerns that they may be forced to impose new fees on customers to offset their losses.

Their experience stood in contrast to new reports published by the Federal Trade Commission and the Government Accountability Office, which suggest that a provision meant to protect small banks from debit card reform has indeed shielded them from any significant losses in revenue. The provision exempted small financial institutions from reducing their card-processing fees (or swipe fees) but capped them for large banks. Regulators said the change prompted credit card companies to create a two-tiered pricing system in which small banks can continue charging customers higher rates each time they use their debit cards.

But community bank and credit union executives say the government reports are premature and dont necessarily reflect the impact on their businesses.

The fees that the credit card processors pass on as revenue to banks like ours have definitely gotten smaller, said Denise Stokes, senior vice president of Sandy Spring Bank in Olney, Md. Those companies took a hit when revenue dropped for the large banks, so they passed some of that loss on to us in the form of lower rates on processing fees. Our loss hasnt been huge, not as high as what the large banks have been hit with, but still, its been significant.

Washington area banking executives said they expect the decline to continue in the coming years, which could prompt community banks and credit unions to follow in the path of many of their larger counterparts, adopting new fees and pulling back on free services to make up for lost revenue.

When these banks start losing revenue, consumers often start losing free checking and start paying new processing fees, said Trish Wexler, a spokeswoman for the Electronic Payments Coalition, a Washington group representing credit unions, community banks and payment card networks. In the end, when two large industries fight and go to lawmakers to try to resolve those differences, its almost always the consumer who winds up with the short end of the stick.

In addition to capping swipe fees for large financial institutions, which took effect in October 2011, an amendment to the Wall Street reform law also included whats called the routing and exclusivity provision requiring credit card issuers to give merchants banks more payment processing options. The intent is to drive down transaction costs for merchants as more processing companies vie to offer the most affordable services.

But some economists expect the provision will lead card companies to offer lower compensation for each transaction.

The provision that could really start to lower interchange revenues for smaller institutions took effect in April, and in the only full quarter since then, the third quarter of 2012, we saw the first-ever decline in interchange revenue for credit unions, said Bill Hampel, chief economist for the Credit Union National Association, citing his groups latest quarterly survey. We are concerned about whether that was a one-time downward shift or the first of several quarters of decline.

Such uncertainty prompted many banking officials to suggest it is too early to evaluate the laws impact on small banks and credit unions.

Its kind of like saying, It hasnt snowed yet this year, so its not going to snow, Bradford Thaler, vice president of legislative affairs for the National Association of Federal Credit Unions, said of the FTC and GAO reports. Its too early to tell, but if anything, were seeing evidence that the fees for big and small banks will eventually come together.

2013
01/06

Category:
Revenue

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Obama: More revenue needed after ‘fiscal cliff’ deal

Following the House vote that averted the fiscal cliff Tuesday night by raising taxes on the wealthy, President Obama warned lawmakers that he quickly will seek more tax revenue from high earners and corporations and that he wont bargain in an impending battle over raising the nations borrowing limit.

While Republicans in Congress say the spending cuts that were missing from this weeks agreement must feature prominently in the next fiscal deal, Mr. Obama said future bargains must meet his definition of balance.

Cutting spending has to go hand in hand with further reforms to our tax code so that the wealthiest corporations and individuals cant take advantage of loopholes and deductions that arent available to most Americans, Mr. Obama said in a late-night appearance in the White House press briefing room. We cant simply cut our way to prosperity.

After making his statement, Mr. Obama then departed on Air Force One overnight for Hawaii, where he rejoined his family to complete the vacation that was interrupted by the last-minute fiscal negotiating.

The legislation approved by the House late on New Years Day combines $330 billion in new spending with $3.6 trillion in extended tax breaks for most Americans, but a tax increase on the wealthiest wage earners. It raises tax rates for individuals earning more than $400,000 per year and families earning more than $450,000.

Taxpayers below those thresholds will keep their income tax cuts, although most taxpayers will see a tax increase this week because of the expiration of a 2 percent payroll tax cut.

House Republicans voted nearly 2-to-1 against the bill, arguing that it includes too much new spending and tax increases without any deficit reduction. The legislation adds about $4 trillion in deficits over the next decade.

Speaker John A. Boehner, Ohio Republican, who voted for the deal, said spending still needs to be addressed.

The federal government has a spending problem that has led to a $16 trillion national debt that threatens our countrys future, Mr. Boehner said. The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the balanced approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt.

The bills approval came less than 48 hours before a new Congress is sworn in on Thursday.

Mr. Obama said the agreement enshrines a principle into law that will remain as long as I am president: The deficit needs to be reduced in a way thats balanced.

Everyone pays their fair share, Mr. Obama said. Everyone does their part. Thats how our economy works best. Thats how we grow. We cant keep cutting things like basic research and new technology and still expect to succeed in a 21st-century economy.

The president said hes willing to consider cuts in Medicare as part of the next fiscal deal, which will come to a head within two months as the federal government bumps up against its legal borrowing limit of $16.4 trillion.

The government technically already has hit that limit, but the Treasury Department is taking steps to postpone the day of reckoning until late February or early March.

The president said he wont tolerate a battle over the debt ceiling like the one he waged with House Republicans in the summer of 2011, a feud that damaged the nations credit rating and spooked financial markets.

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2013
01/06

Category:
Revenue

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Infosys may cut revenue guidance

BANGALORE: The results season is likely to begin on a low note. When Infosys announces its results for the December quarter on January 11, it is quite likely that it will once again reduce its dollar revenue guidance for the year.

Brokerage firm Enam Securities says in a recent report that Infosys December quarter is likely to be muted due to fewer new deals and the effects of Hurricane Sandy. Hence, a downward revision in FY13 revenue growth guidance of 5 per cent is likely, it says.

2013
01/05

Category:
Revenue

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Facebook Mobile Ad Revenue on Pace for Big 2013

From zero to hero. Thats what Facebook is looking to do between a rough start on Wall Street in 2012 and a triumphant mobile presence in 2013.

According to the latest industry analysis and some corresponding predictions, Facebooks status among marketers in 2013 will rise in lockstep with the social networks mobile ad revenue.

On Wednesday, an analyst with JP Morgan upped his price target for Facebook better than 20% to $35 per share. Thats higher than the former price target of $29.

“We believe Facebooks advertising revenue will accelerate at least through [the first quarter] and we are raising our advertising estimates 6% to 7% for 2013 and 2014,” analyst Doug Anmuth wrote in a report to investors today, according to Forbes.

The analyst notes that Samsung Mobile used Facebook ads during the launch of its Galaxy S3 smartphone and generated about $129 million in sales attributable to Facebook, “delivering an ROI of 13x on Samsung’s $10 million of Facebook ad spend.”

As a result of this somewhat renewed Wall Street optimism, shares of FB have spiked approximately 3% so far today.

2013
01/03

Category:
Revenue

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U.S. Small Businesses Add Slightly More Jobs in 2012, See Less Revenue …

By Melodie Warner

US small businesses added more jobs in 2012 despite a slight drop in revenue through November, according to a report
by Intuit Inc. ( INTU ).

The financial-software provider said its inaugural small-business employment and revenue report found that US small
businesses added 24,000 jobs in 2012, increasing their employment by 0.12%.

The December Small Business Employment Index also showed an increase of 15,000 new jobs in the final month of 2012, a
hiring rate increase of 0.09%.

Small business employment is still growing, albeit very slowly, said Susan Woodward, an economist who worked with
Intuit to create the indexes. However, the level of small business employment has yet to reach its pre-recession level
of 21.2 million jobs in March 2007.

Small-business revenue was down 1.2% between January and November, with a 0.3% drop in November, the ninth consecutive
month of revenue decline.

Small-business hourly employees worked an average of 107.4 hours in December, up slightly from 107.3 hours in
November.

The average monthly pay for small-business employees rose 0.5% to $2,702 in December from $2,689 in the prior month.

Write to Melodie Warner at melodie.warner@dowjones.com.

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01-02-130925ET
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