Subject: Re: TSIG Heres the real story
Date: 7/17/98 7:28 AM Eastern Daylight Time
From: Viper1433x
Message-id: <1998071711283000.HAA17054@ladder03.news.aol.com>
TeleServices International Group Inc. (TSIG)
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EXECUTIVE SUMMARY AND COMPANY OVERVIEW
Overview
TeleServices International Group Inc. ("TSIG") is an emerging independent provider of fully integrated global teleservices to companies focused on selling products and services through toll-free numbers and the Internet. TSIG's wide array of teleservices include telephone sales/order capturing, customer service and product support, assistance with billing and other inquiries, as well as direct response advertising.
ÿÿÿÿ TSIG's recent move into the music industry, with its acquisition of Compact Connection, Inc. (CCI), poises TSIG to deliver significant revenue and earnings growth over the next three years. This will be made possible with the company's enhanced call center computer telephony integration, expanding customer niches within the travel and tourism industry, and additional strategic acquisitions.
ÿÿÿÿ The teleservices industry is immense. As businesses discovered the use of the telephone as a dynamic, effective, low cost means to directly communicate with their customers, the industry grew to an estimated $81 billion in 1996, up 138% from $34 billion in 1986. The outsourced market segment of the teleservices industry in 1997 accounted for $8 billion, or 7% of total industry sales, as reported by Telemarketing and Call Centers Solutions
magazine . The teleservices market is achieving annual growth rates in the double digits with the outsourced market segment outpacing the industry, growing by a significant 90% in 1996.
ÿÿÿÿ In 1996, Americans dialed toll free numbers 27.6 billion times - averaging more than 75 million calls per day. These figures are projected to increase at astounding rates as companies are relying on the telephone as the least expensive medium to replace and/or augment traditional one-way communication (sales force, direct mail, media advertising) for marketing their products and services. The telephone has been proven to be an effective sales
and customer service channel.
ÿÿÿÿ Today's consumer has become more sophisticated and requires the convenience of on-demand service and customer support. In an effort to keep pace with these new expectations, companies (both leading and emerging) have embraced outsourcing, realizing that running a call center 24 hours a day, 7 days a week with personnel and technology issues, is not their core competency.
ÿÿÿÿ Industry experts believe that the Internet will profoundly change the teleservcies industry in the next ten years. TSIG is already in the process of complementing each of its telephone based programs with expanded Internet related services to meet the needs of increased commerce being conducted on the Internet.. The global Internet market is expected to soar to $200 billion by the year 2000. The U.S. Internet Society projects 120 million hosts
will be connected to the Internet by the end of the decade, up from 9.5 million today.
ÿÿÿÿ The teleservices industry entered the public spotlight in June, 1995, when SITEL held its initial public offering. Since then, eleven other companies have tapped into the equity capital markets with initial public offerings. There have also been three secondary offerings. Market capitalization for this group ranges from $31 million to $1.2 billion with a median of $415 million. Overall, market capitalization for these teleservices companies
increased by 112% since June, 1995. For the same period, the median increase in market capitalization is 145%. Current price earnings ratios range from 20.0 to 83.3 with a median of 47.4
Corporate Culture & Management Team
TSIG is being lead by an experienced management team who have proven successes in the teleservices, technology, travel, hospitality and consumer packaged goods industries. Of critical importance, this "seasoned" team understands the special needs of young publicly / privately funded companies to drive revenue growth in order to generate a strong return on share holders investments. TSIG's corporate culture is one that utilizes the team approach with
management contibuting key input and direction based on their individual industry expertise. TSIG's focus is on building long term relationships with its customers, by providing them with proven cutting edge technology, personalized customer service and financial accountability.
Visitors Services International
TSIG originally entered the teleservices industry in 1992 through its subsidiary company, Visitors Services International Corp, formerly Visitors Services, Inc. ("VSI") VSI specializes in the effective and efficient handling of customized services to the $416 billion U.S. travel and tourism industry.
ÿÿÿÿ Utilizing company owned call centers, VSI is highly regarded as a formidable and innovative "niche" leader within the U.S. travel and tourism industry for its ability to offer turnkey services and solutions that include the direct selling and booking of reservations for lodging accommodations, airline and car rentals, in addition to leisure packages, and specialized promotional event offerings. VSI's highly trained agents focus on
person-to-person selling tailored to meet individual client needs. Database management and seamless sales/customer service are also provided as part of its fully integrated destination marketing service.
ÿÿÿÿ VSI's customers include leading U.S. Convention & Visitors Bureaus and Chambers of Commerce (i.e. Los Angeles, Denver, Fort Lauderdale, Atlanta, Palm Springs); State Tourism Bureaus ( New York, Michigan, Utah), tour operators, airlines, and private sector companies within the travel & tourism industry.
ÿÿÿÿ Recent technology upgrades, including enhanced call center computer telephony integration (CTI),allow VSI to conduct business on behalf of its customers, directly on the Internet. VSI also provides its customers with secured websites for proprietary database reporting, available 24 hours a day.
ÿÿÿÿ In 1996, the Internet accounted for $608 million in travel bookings. Today, travel accounts for about 25% of the total commerce on the web with all travel related categories projecting double digit growth in the next three years. Recently released travel surveys indicate that 50% of consumers who own a computer are interested in using on-line services to book travel.
ÿÿÿÿ VSI's unique ability to effectively handle heavy call volume demands, book reservations and close sales using any combination of its call center - customer service, Internet, and other expanded applications expertise, well positions this subsidiary to generate consistent increased earnings and revenue growth in an expanding "niche" marketplace.
Compact Connection, Inc.
TSIG's recently completed 1998 purchase of Compact Connection, Inc.(CCI), an innovative direct music wholesale supplier of compact disks and cassettes, is fully integrated into all aspects of TSIG's existing teleservices operation. This new acquisition provides TSIG with unprecedented growth potential within the booming $35 billion global music market.
ÿÿÿÿ CCI's unique marketing format incorporates the sale of a music card that allows its purchaser the ability to buy a specific number of compact disks or cassettes from over 200,000 titles, including the music industry's latest top releases, at a "rock bottom" retail prices, undercutting all competitors. Even when adding minimal shipping and handling charges, the total CCI price is lower than any of its competitors. Purchases are sent via mail .
CCI music cards can be purchased from authorized CCI distributors, directly from the CCI Internet website or by calling a toll free number. CCI's music category offerings include: Christian, Classical, Country, Dance/Rave, Jazz, Rap and Rock.
ÿÿÿÿ CCI provides its customers with the finest and highest quality music recordings sold in the United States. By combining nationally known recording labels along with selected wholesalers and one stops, CCI is able to offer virtually any published title/ label. The Company is a master broker for: Arista, Atlantic, BMG, Capital, CBS, Columbia, EPIC, Geffen, Island, London, MCA, Mercury, Motown, Polygram, Rodell, RCA, Telarc, Virgin Record and
Warner Bros. Companies.
ÿÿÿÿ $9.9 billion worth of compact disks (CDs) were sold worldwide in 1997 . CD sales over the Internet in 1997, totaled $19 million. Music industry analysts, Jupiter Communications, project that by the end of 1998, Internet music sales will total $47 million - more than double what was sold last year - and only represents 6% of total U.S. CD sales. CD sales via the Internet are projected to reach $1.6 billion by 2002.
ÿÿÿÿ The CCI music card will be supported with an upbeat, aggressive, national marketing campaign that will utilize cable television, print, the Internet (Search Engines), radio, and direct mail in the marketing mix.
"VIPER" 40,000 strong |
