This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

DFC Global Corp. Provides Update On Recent Business Developments

Stocks in this article: DLLR

DFC Global Corp. (NASDAQ:DLLR), a leading international diversified financial services company serving primarily unbanked and under-banked consumers for over 30 years, is providing an update on a number of recent business developments.

The third-party national bank that funds the loans that are the basis of the Company’s branded Military Installment Loan and Education Services, or MILES ®, program, has sent a termination notice effective September 13, 2014, two years from now. As the Company has previously disclosed, it is in discussions with potential lending partners that the Company believes will more competitively underwrite the MILES program loans. These discussions are in advanced stages, and the Company believes that these new replacement arrangements will be in place later this fiscal year.

Additionally, on September 11, 2012, a bill was introduced in the Finland Parliament to restrict the interest rate on loans less than €2,000 to 50% APR. If approved by Parliament as drafted, this law would significantly restrict the Company’s present internet-based short-term loan product in Finland. The Company generates approximately €25 million, or less than 3%, of its total consolidated revenues from unsecured short-term loans in Finland. The Company intends to continue to leverage the scalable technology platform and back-office support capabilities of its Finland based internet lending business by offering loans in other countries in Europe. The Company has already successfully leveraged the Finland platform by launching an internet loan product in Poland.

If the Company is not successful in replacing the current lending bank for its MILES loan program, or is not successful in adding other internet-based products in Finland, there is a possibility that future goodwill impairment charges could ensue.

Other Business Developments

The Company has recently expanded its loan collection facilities and automated dialer capabilities in the United Kingdom in anticipation of further growth of its store and internet-based short-term loan products in the U.K., Poland, and other new countries in Europe. In addition, the Company has recently expanded its business development function in Europe, which is responsible for developing, testing, and launching new products and services in the United Kingdom and Europe. This group has recently begun testing longer term loan products in the United Kingdom during the current quarter. The costs of these investments will be incurred during the first half of the current fiscal year, but are anticipated to translate into additional revenue and earnings growth in the second half of the Company’s fiscal year ending June 30, 2013.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,806.69 -8.25 -0.05%
S&P 500 2,070.24 +3.21 0.16%
NASDAQ 4,778.5950 +20.3430 0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs