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OPERATING SEGMENTS
 12 Months Ended
Dec. 31, 2018
Statements [Line Items]  
OPERATING SEGMENTS [Text Block]

4. OPERATING SEGMENTS

The Corporation’s reportable segments are Loyalty Currency Retailing, Platform Partners, and Points Travel. These operating segments are organized around differences in products and services.

During the year ended December 31, 2018, the Corporation re-defined the measure of segment profit or loss to Contribution from Adjusted EBITDA. The Corporation determined that Contribution was the more appropriate measure of segment profit or loss used by the Chief Operating Decision Maker (“CODM”) in reviewing segment results and making resource allocation decisions. Contribution is defined as gross profit (total revenue less direct cost of principal revenue) for the relevant operating segment less direct adjusted operating expenses. Direct adjusted operating expenses are expenses which are directly attributable to each operating segment. Assets and liabilities are not provided to the CODM at the operating segment level and are therefore not allocated to the operating segments for reporting purposes. The Corporation has restated the disclosures for the year ended December 31, 2017 to reflect this change in segment performance measure. There have been no changes in the Corporation’s reportable segments.

For the year ended December 31, 2018: 

   Loyalty 
Currency 
Retailing		     Platform 
Partners		     Points 
Travel		     Total  
Total revenue   366,421     7,979     1,845     376,245  
Direct cost of principal revenue   321,615     615     111     322,341  
Gross profit   44,806     7,364     1,734     53,904  
Direct adjusted operating expenses   12,941     3,784     5,522     22,247  
Contribution   31,865     3,580     (3,788 )   31,657  
Indirect adjusted operating expenses1                     13,718  
Finance income                     (666 )
Equity-settled share-based payment expense                     4,381  
Income tax expense                     3,104  
Depreciation and amortization                     3,364  
Foreign exchange gain                     (36 )
Net income                     7,792  
 
For the year ended December 31, 2017: 
(restated, see Note 3(a)) 		   Loyalty 
Currency 
Retailing		     Platform 
Partners		     Points 
Travel		     Total  
                         
Total revenue   339,652     7,704     1,288     348,644  
Direct cost of principal revenue   301,492     570     32     302,094  
Gross profit   38,160     7,134     1,256     46,550  
Direct adjusted operating expenses   11,515     4,644     4,292     20,451  
Contribution   26,645     2,490     (3,036 )   26,099  
Indirect adjusted operating expenses1                     13,086  
Finance income                     (213 )
Equity-settled share-based payment expense                     4,455  
Income tax expense                     1,461  
Depreciation and amortization                     3,988  
Foreign exchange gain                     (58 )
Net income                     3,380  

1 Indirect adjusted operating expenses comprise costs that are shared among the Loyalty Currency Retailing, Platform Partners and Points Travel operating segments, including costs associated with various corporate functions, such as Finance, Human Resources, Legal and certain expenses associated with information technology infrastructure.

Transaction price allocated to the remaining performance obligations

The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers.

  Total Year 1 Year 2 Year 3 Year 4 Year 5+
Hosting and other $ 3,209 $ 2,525 $ 312 $ 186 $ 186 -

Enterprise-wide disclosures - Geographic information

   

2018

     2017    
For the year ended December 31         (restated - Note 3 (a))  
Revenue                        
 United States $  331,625     88%   $  304,116     87%  
 Europe   25,661     7%     31,873     9%  
 Other   18,959     5%     12,655     4%  
  $  376,245     100%   $  348,644     100%  

Revenue earned by the Corporation is generated from sales to loyalty program partners directly or from sales directly to members of loyalty programs with which the Corporation partners. Revenues by geographic region are shown above and are based on the country of residence of each of the Corporation’s loyalty partners. As at December 31, 2018, substantially all of the Corporation's assets were in Canada.

Dependence on loyalty program partners

For the year ended December 31, 2018, there were three (2017 – three) loyalty program partners for which sales to their members individually represented more than 10% of the Corporation’s total revenue. In aggregate, sales to the members of these partners represented 70% (2017 – 69%) of the Corporation’s total revenue.