Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Thomas McCrohan – Janney Montgomery Scott
Thomas McCrohan – Janney Montgomery Scott
Just a quick question on the currency, could you help us allocate the $23 million adverse impact this quarter on revenue from currency between Canada and some of the other regions in your business.
David Mangum
I think that we’re not going to get into real specifics on the country by country basis but as you likely know the majority of that number is Canada and then the other geographies, the UK, the other parts of Europe really comprise in equal parts almost the minority of the amounts but the majority, significant majority is Canada. That’s probably about as detailed as we’re going to get on that for the moment.
Thomas McCrohan – Janney Montgomery Scott
And then implicit in your guidance, I just want to make sure I heard you correctly is that you’re assuming based on, you aren’t currency experts just kind of pulling data from other sources, that your guidance is assuming the US dollar stays at the same level relative to Canada for the rest of the year? Is that implicit in how we should read your guidance?
David Mangum
Yes, so I would suggest you think about it in this way, our outlook is indeed based on the recent FX trends but it does accommodate some further strengthening of the US dollar by maybe as much as 5% to 8% against all of our key currencies.
Now you’d have to know which one is moving in which direction obviously but that’s how we sort of thought about the forecast. We’re not really assuming much weakening but our outlook also accommodates a little bit of modest weakening at the margin as well. And you just saw a little bit of that happen in Canada over the last couple of days.
Thomas McCrohan – Janney Montgomery Scott
On the US business can you give us a little color on what you’re seeing in average ticket prices?
Paul Garcia
We saw and I’ll be happy to share a little bit during the December which of course is our third quarter, although we haven’t closed the books on December, we have some volumes and some transaction counts, and we did see a lowering of the average ticket amount in December.
Now its important to remember that particularly for our ISOs 1005 of our fees are derived on a per transaction basis so we’re fairly agnostic. It does impact us on the direct side where we charge a percentage of the transaction but we have that bet pretty well hedged.
- To read the full transcript on Seeking Alpha, click here »
