Global Games/Communications, Inc. of Minneapolis, Minnesota, unveiled its development plan for its subsidiary, Electronic Card Services, Inc. of Miami, Florida on Tuesday.
Global acquired ECS in December 1997. ECS is a young business providing prepaid phone cards through both counter sales and machine dispensing. Its initial distribution has been in the Toronto, Canada market. ECS’s rapid growth is reflected by third quarter 1997 revenues of $450,000 and fourth quarter revenues of $750,000. Global paid $1.6 million for ECS in cash and restricted stock.
Global’s immediate plans are to double the outlets in Toronto by the end of January 1998. Subsequent installations are planned for Montreal, Ottawa and Vancouver during the first half of 1998, and several U.S. cities will be entered during the third and fourth quarter of 1998. Strategic alliances have been established with several entertainment magazines to promote the cards and expand the number of outlets.
“We expect an exponential growth for this company,” commented Mr. Gary Borglund, President of Global. “We have the sites, machines and marketing clout to triple the volume of ECS in the next few months. In addition, we are adding other applications to the cards…they will be be able to be used for dating chat line and related services, for Internet Access, as well as other uses. Our new sites will provide a high volume of traffic with a focus on upwardly mobile, younger demographics with a knowledge and affinity for the use of plastic card access to many applications. Our current projections are for $14 million in revenue in calendar 1998, with an operating profit margin approaching fifty percent (50%).”
Electronic cash card sales in 1997 were just over $2 billion in prepaid phone card usage alone, and an annual volume of over $4 billion is expected by the year 2001. The prepaid cards will fit strategically with Global’s Village concept, as the cards can be used to access Internet services when traveling, and the Village will be an effective mechanism to market the cards to Internet browsers.
Global Communications provides commercial Internet services, third party credit card processing, and Internet entertainment with bingo and lotto games. Several other acquisitions are in process by which Global will expand its Internet services and revenue sources.Details