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What are the annual revenues of InComm (www.incomm.com) from 2010-2016? How do these revenues break out between B2C vs B2B sales, and physical gift cards vs digital gift cards?
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Thanks for your question on what are the annual revenues of InComm (www.incomm.com) from 2010-2016? How do these revenues break out between B2C vs B2B sales, and physical gift cards vs digital gift cards?
OVERVIEW
The short version is that Incomm's revenue in 2016 was $4 billion, which is a significant rise from $1,25 billion in 2010. The sales of digital gift cards reached 70% of total gift cards sales in 2016, which would imply that Incomm's revenue out of digital gift cards in 2016 is $2,8 billion. In 2015, Incomm's revenue from B2B sales was $875 million, while B2C sales were worth $2,62 billion.
To provide this answer, I relied on the data from Incomm's website, Mercator Advisory Group, National Gift Card Corp Europe, the Prepaid Press and many others.
The key data from this response has also been uploaded to Google Sheets that you can check here and download for personal use.
Below you will find a deep dive of my research / findings along with all the details for how I came to this answer. In the resource section, you will find a list of sources with a wealth of additional information that you can find useful.
CALCULATING THE REVENUE
InComm is a privately held company and does not share revenue data. Financial statements/investor reports are therefore not available, but we managed to triangulate their revenue data for 2011-2016 period. In the following part, we'll walk you through our calculations.
The first piece of information is Incomm's annual transaction volume per year:
2010 - $12,5 billion (an estimate, as though we plotted the above figures on a graph and drew a smooth line)
2012 - $20 billion (2013’s $28 billion being up 40% over 2012)
2015 - $35 billion (an estimate, as though we plotted the above figures on a graph and drew a smooth line)
To calculate the revenue out of the transaction volume figure, we'll use the Blackhawk Network financial report for 2016 in which prepaid and processing revenues as a % of transaction dollar volume is around 10%. While this % figure varied in last few years between 9% to 10%, we know that InComm is a larger company than Blackhawk so it would be reasonable to expect that they would have equal or greater economies of scale and an equal or better revenue as a percentage of dollar volume.
Based on this, Incomm's revenues for 2009-2016 period are following:
2009 - $1 billion
2010 - $1,25 billion
2011 - $1,5 billion
2012 - $2 billion
2013 - $2,8 billion
2014 - $3 billion
2015 - $3,5 billion
2016 - $4 billion
REVENUE BREAKDOWN
When it comes to how do these revenues break out between physical gift cards vs digital gift cards, it is worth knowing that "while physical gift cards remain an important part of holiday strategies, 2014 saw a greater portion of digital gift cards sold during the holiday season.
67% of total sales in December 2014 were digital gift cards (compared to 57% in 2013)
33% of total sales in December 2014 were physical gift cards (compared to 43% in 2013)".
An article regarding the survey results' published by Incomm in 2015 indicated that "nearly 70% strongly agree that they are more interested in purchasing digital gift cards now than they were two to three years ago" but also that "the digital gift card market is in a state of substantial growth and with ever increasing consumer connectivity (via smartphones, laptops and tablets) there is no immediate plateau in sight".
So it would be safe to assume that the sales of digital gift cards reached 70% of total gift cards sales in 2016, which would imply that Incomm's revenue out of digital gift cards in 2016 is $2,8 billion.
In terms of the B2C vs B2B sales, "on average 25% of sales in the USA are B2B" (slide 11), as noted by Andrew Johnson, CEO National Gift Card Corp, Europe, at the 6th International Gift Card and Couponing Summit in Frankfurt (September 2015).
This means that in 2015, Incomm's revenue from B2B sales was $875 million, while B2C sales were worth $2,62 billion.
Despite an extensive search (including reading years' worth of company press releases, news articles, interviews, databases etc.), we were unable to find any other hard numbers on physical vs digital and B2B vs B2C, but the information presented here can give you a solid estimate.
SUMMARY
To conclude, Incomm's revenue in 2016 was $4 billion, which is a significant rise from $1,25 billion in 2010. The sales of digital gift cards reached 70% of total gift cards sales in 2016, which would imply that Incomm's revenue out of digital gift cards in 2016 is $2,8 billion. In 2015, Incomm's revenue from B2B sales was $875 million, while B2C sales were worth $2,62 billion.
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