CUC sees Q1 in line with estimates
Reuters Story - April 09, 1997 14:43
NEW YORK, April 9 (Reuter) - CUC International Inc's chief
executive said he expected the company to meet analysts'
estimates for the first quarter and to meet or exceed revenue
estimates for the new fiscal year.
"I think we will be at $3 billion (in revenues this year),
maybe even more," said Walter Forbes, speaking at a PaineWebber
Internet conference. Last year the company posted $2.3 billion
in revenues.
For the first quarter, Forbes would not comment beyond
saying the company would meet estimates. The First Call
consensus estimate is $0.17 per share.
CUC International is a member-based consumer services
company which has started branching into the interactive media
business. It is often responsible for the direct mail offers
enclosed with credit card statements.
Forbes said it would be a long time before most of its
transactions were done over the Internet, rather than over the
phone, but the company is still committed to being a major
presence online.
CUC is planning to launch this June a comprehensive online
marketplace, with cars, consumer products and entertainment
items offered at low or discounted prices.
"In time we are going to have everything consumers want in
one marketplace," Forbes said, adding that the goal is a "deep,
very vertical relationship with the entire family."
Forbes predicted maybe half of CUC's members in the United
States would be online in about seven years but that still left
all the rest of the members, including those overseas, in the
traditional phone relationship.
In the meantime, "our long-run goal remains to stay in the
membership business," Forbes said. "Get as many members as
possible, get them on the phone and we will convert them
later."
He said there were about 65 million members as of last
quarter, with an expected annual increase of between 10 percent
and 12 percent. |
