Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of James Kissane - Banc of America/ Merrill Lynch.
James Kissane - Banc of America/ Merrill Lynch.
Hey does your 2010 guidance include Charming? I just want to confirm that and maybe review what Charming can add in terms of revenue and earnings?
Ed Heffernan
2010 does include Charming, and I think we are sort of steering away from ..
Ivan Szeftel
I mean I don’t think we’re going to break it out separately Jim, but you can assume that it does include, given the latest approval it does include Charming in our 2010 guidance.
James Kissane - Banc of America/ Merrill Lynch
Okay and maybe the accounting for the Brazilian loyalty investment, I assume that’s g to be the equity method, but will you be generating any top line revenue there?
Ed Heffernan
Not enough to be significant, and yes it will be the equity method.
James Kissane - Banc of America/ Merrill Lynch
Do you have any call option to buy in a bigger stake, maybe get control?
Ed Heffernan
I think you can assume that, yes, there is write up first refusal, there is goals and the usual stuff that would be in one of those things.
James Kissane - Banc of America/ Merrill Lynch
Okay. Was this the international loyalty program that you were referring to on the last call?
Ed Heffernan
It’s certainly one of them. We continue to search the globe for the next one, and so, we will have a team out there during 2010 looking for other programs such as this where we can take a sizeable position in an existing program and then bring in our expertise and bricks and mortar and everything else and get this probably ramped up. So, this would probably be the model going forward.
James Kissane - Banc of America/ Merrill Lynch
Okay. So, note taking majority stakes. Just investment, kind of seeding investments here.
Ed Heffernan
This one was a good shot, chance for us but as we moved from phase one, which is in one region of Brazil, to hopefully a full countrywide roll out, some of the other players may have interest, some of the sponsors in taking in equity stake as well. We want to keep ours certainly where it is if not go higher, but Brazil probably is a little different because the country is so big, six or seven times the size of Canada. With smaller countries we would obviously prefer to take the whole shoot and match.
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