Affinion Reports $60 Million Increase in Revenues for Second Quarter
Membership club and insurance direct marketer Affinion Group Inc. reported net revenues of $333.3 million for the second quarter that ended June 30, reflecting a $59.7 million increase compared to the second quarter of 2006. Figures from both years are unaudited.
The company attributed the increase in revenues to growth in international products, insurance and package products. However, revenues were slightly offset by lower loyalty and membership product revenues, according to Affinity.
It reported that contract terminations and the absence of royalty revenue from patent licenses led to the decline in loyalty product revenue. Changes in deal structures were cited as the reason for an overall decline in revenues generated via memberships.
Affinion had 8.2 million members in second quarter of this year, compared to 9.2 million in the second quarter of 2006. However, its average net revenue per member was $71.90 for the latest second quarter, up from $64.85 for the second quarter of 2006.
