unconsolidated subsidiary, Comenity Canada, L.P., which was sold to an affiliate of our former Parent in August 2021 for $4.1 million and for which we recognized a gain on sale of unconsolidated subsidiary of $4.1 million.
Nine months ended September 30, 2022 compared to the nine months ended September 30, 2021
Revenue. Total revenue decreased $7.6 million to $489.1 million for the nine months ended September 30, 2022 as compared to $496.7 million for the nine months ended September 30, 2021. The net decrease was due to the following:
| ● | Redemption, net. Redemption revenue decreased $7.1 million, or 3%, to $273.8 million for the nine months ended September 30, 2022, as revenue from our coalition loyalty program decreased $9.1 million despite an increase in AIR MILES reward miles redeemed because of an increase to our value proposition and cost of redemptions that are netted against revenue in accordance with ASC 606. This was partially offset by the increase in redemption revenue from our campaign-based loyalty programs of $2.0 million. In Euro, redemption revenue from our campaign-based loyalty programs increased by 13% due to certain program performance in Europe. The timing and size of programs can vary between the comparative periods. |
| ● | Services. Services revenue decreased $7.4 million, or 4%, to $191.8 million for the nine months ended September 30, 2022 due to the impact of the decline in AIR MILES reward miles issued in 2020 and 2021, as a portion of the consideration from those issuances is deferred and amortized into revenue over the estimated life of an AIR MILES reward mile. |
| ● | Other revenue. Other revenue increased $6.9 million, or 41%, to $23.5 million for the nine months ended September 30, 2022, due to an increase in ancillary revenue associated with surplus inventory in our BrandLoyalty segment and ancillary revenue earned on travel bookings within our coalition loyalty program. |
Cost of operations. Cost of operations increased $35.1 million, or 9%, to $407.9 million for the nine months ended September 30, 2022 as compared to $372.8 million for the nine months ended September 30, 2021 due to a $34.5 million increase in cost of redemptions due to the increase in logistics costs associated with our campaign-based loyalty programs, and restructuring and other charges incurred of $9.6 million. These increases were partially offset by a decrease in incentive compensation.
General and administrative. General and administrative expenses increased $4.3 million, or 37%, to $15.9 million for the nine months ended September 30, 2022 as compared to $11.6 million for the nine months ended September 30, 2021, due to an increase in payroll and benefits expense, including stock compensation and other amounts associated with the Employee Matters Agreement, as well as additional consulting and legal expenses.
Depreciation and other amortization. Depreciation and other amortization decreased $1.1 million, or 4%, to $25.1 million for the nine months ended September 30, 2022 as compared to $26.2 million for the nine months ended September 30, 2021 due to certain fully depreciated property and equipment.
Amortization of purchased intangibles. Amortization of purchased intangibles decreased $0.5 million, or 38%, to $0.8 million for the nine months ended September 30, 2022, as compared to $1.3 million for the nine months ended September 30, 2021, as a result of the decline in foreign currency exchange rates.
Goodwill impairment. In the second quarter of 2022, we recognized a goodwill impairment charge of $422.9 million associated with the BrandLoyalty segment.
Interest expense (income), net. Total interest expense (income), net increased $30.3 million due to the interest expense associated with the Credit Agreement entered in connection with the Separation in November 2021.
Taxes. Provision for income taxes decreased $4.2 million to $27.5 million for the nine months ended September 30, 2022 from $31.6 million for the nine months ended September 30, 2021. The change in the effective tax rate to (6.6)% for the nine months ended September 30, 2022 as compared to 35.5% in the prior year period was primarily a result of