Citibank customers soon will be able to make deposits at more than 2,000 multifunctional ATMs, or Vcoms, owned by Cardtronics Inc., that are housed inside 7-Eleven Inc. convenience stores, J. Chris Brewster, Cardtronics chief financial officer, told analysts this week during a fourth-quarter and yearend analysts conference call.
Since January, Citibank has been piloting deposit acceptance at 900 Vcoms in 7-Eleven stores in Alameda County, near San Francisco.
Citibank executives wanted to determine how customers reacted to being able to make deposits at Citibank-branded ATMs located inside 7-Eleven stores and if educational materials were needed to facilitate those deposits, says Mark Gilder, Citibank ATM and remittance business manager.
If executives determined the pilot was successful, Citibank said it would roll out deposit acceptance to more 7-Eleven stores in California.
Except in locations where the deposit pilot is taking place, Citibank customers are limited to withdrawing cash surcharge-free from Citibank-branded ATMs housed in 7-Eleven stores through a contract the New York-based bank has with Cardtronics.
Houston-based Cardtronics purchased 5,700 cash-dispensing ATM and Vcoms from 7-Eleven in June 2007 for $135 million plus an adjustment for working capital.
"We will be adding to our remote deposit cashier platform the Citibank card base here in the next couple of months," Brewster said during the call. "Citibank customers will be able to make remote deposit at 2,200 Vcoms located in 7-Eleven in the next couple of months."
Citibank is the nation's sixth-largest ATM owner and operator, with 3,315 machines, according to ATM&Debit News.
Since the 7-Eleven purchase, Cardtronics has employed different strategies to make the Vcoms profitable.
In addition to Citibank, members of Rancho Cucamonga, Calif.-based Co-op Financial Services can make deposits at the Vcoms.
For the three-month period ended Dec. 31, Vcom operating revenues were $1.24 million compared with $566,000 for the same three-month period in 2007.
Cardtronics, the world's largest ATM independent sales organization based on machines owned and managed, reported total revenues of $118.2 million for the three-month period ending Dec. 31 compared with revenues of $115.9 million for the same three-month period ending in 2007.
The company reported a fourth-quarter net loss of $57.9 million compared with a net loss of $7 million for the same three-month period in 2007.
Cardtronics executives blamed the loss on a write-down in the value of the company's goodwill associated with its UK operation, Bank Machine Ltd.
Cardtronics operated 33,064 transacting ATMs at the end of December, up 3.6% compared with 31,923 a year earlier. ATM