Aimia (TSE:AIM) advanced in morning trading after the company that runs the Aeroplan loyalty-points program reported a higher-than-expected 8.4 percent increase in first-quarter revenue and boosted its dividend.
Shares rose 2.1% to C$13.76 at 1:42 p.m. in Toronto, paring losses over the past twelve months to 28 percent.
Revenue grew to C$660.1 million, the January-to-March quarter, from C$608.9 million a year earlier. That beat the Wall Street consensus of $626.6 million.
Net income was C$21.5 million, or C$0.10 per common share, for the January-to-March quarter, compared to a loss of C$17.3 million, or C$0.13 per share, a year earlier, the Montreal, Quebec-based company said in a statement today.
Adjusted earnings were $0.15 per share, below the $0.18 average estimate of 4 analysts polled by Capital IQ.
Revenue growth was boosted by changes in the value of the dollar, the company said.
The company’s chief executive officer told analysts today that the company is working to make redemptions easier for consumers.
CEO Rupert Duchesne said on a conference call that the company has already introduced some changes and will be upgrading the technology platform used for redemptions.
"Our data tells us that a successful redemption motivates people to find even more ways to earn and earn faster," he said.
Among Aimia's partners are Air Canada (TSE:AC) — its chief airline partner — and Visa credit card issuers TD Bank (TSE:TD) and CIBC (TSE:CM).
Duchesne said that he sees 2015 as the year when things "settle" after a number of initiatives, including a shift of about half of CIBC's Aeroplan Visa customers to TD Bank last year under new 10-year agreements with Aimia.
Also today, Aimia boosted its quarterly dividend to C$0.19 per common share, from $0.18 per share in the previous quarter. The increased dividend is payable on June 30 to shareholders of record at the close of business on June 16.