Aimia, formerly known as Groupe Aeroplan Inc., expects its expertise in analyzing consumer shopping habits to add more revenue and global clients in the next few years, CEO Rupert Duchesne said Friday.
“I think you will see us bring on new partners in that area in the next 18 months, but we’re not going to rush for growth until we’ve got a strong base,” Duchesne said after Aimia’s annual shareholders meeting.
Aimia provides data analytics to five global clients, including Canada’s Sobeys grocery chain, Australian grocer Coles and U.S.-based drugstore chain CVI.
The company’s data analytics business — Intelligent Shopper Solutions — analyzes shopping habits to allow businesses to provide relevant offers and discounts to their customers.
Duchesne said Aimia’s main competitor in the field is marketing data specialist Dunnhumby, owned by U.K.-based grocery and general merchandise retailer Tesco. He said Dunnhumby has clients in 15 countries with revenues in the $300-million to $400-million range.
“We feel fairly comfortable that over a reasonable build-up period we ought to be able to equal their size,” he said, adding that data analytics provides opportunities in retail, financial services and travel.
Intelligent Shopper Solutions currently earns roughly $50 million in annual revenues, said chief financial officer David Adams.
“There is no reason not to believe that this business could be five times as large at maturity,” Adams said.
Duchesne said data analytics are key to Aimia’s success. “The way we get access to the data is by running loyalty programs, so it’s a fundamentally important part of our business.”
But he noted that missteps in data analytics can have global ramifications. “If you screw it up in one country, it goes around the world instantly. We’ve got to be cautious in the way we develop this business.”
Duchesne also said he expects growth this year from Aimia’s Nectar coalition loyalty reward programs in Italy and the United Kingdom.
Aimia’s Canadian operations, which include the Aeroplan loyalty card business, will grow at a more modest rate this year.
Meanwhile, Aimia will look to the United States, Brazil and India for growth in the future. “Going forward, we intend to develop a significant marketing services business in Brazil,” Duchesne said. “It’s a huge market.”
Aimia also has a majority equity position in Air Miles Middle East and a minority position in Club Premier, Mexico’s leading coalition loyalty program.
In its first-quarter results released late Thursday, Aimia reported net earnings nearly doubled to $44.6 million and the company declared a 7% dividend increase to 64 cents per share.
Aimia said its earnings amounted to 24 cents per share, up from $25.3 million, or 12 cents per share, in the same quarter a year ago.
Revenues were $567.7 million, up from $546.2 a year ago.
Duchesne said Air Canada contributes about $250 million in revenues yearly under the Aeroplan reward program. Aimia buys about $600 million in seats from the airline for Aeroplan.
“I think as we continue to grow over the next four or five years, they will continue to be a smaller and smaller part of revenue,” he said of Air Canada.
Duchesne said one in six miles under Aeroplan never gets used. Unused mileage under the plan will expire in 2013.
