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Aimia shares plunge over 20 per cent on fourth-quarter loss

Aimia, the parent company of Aeroplan, says the sale of Nectar will allow it to focus on its loyalty program and simplify its operations.

Shares of Aimia Inc. fell more than 20 per cent in early trading after it reported a $214.7-million loss in its latest quarter, hurt by a charge related to the sale of its Nectar program and related assets.

Aimia shares were down 56 cents or nearly 24 per cent at $1.82 in trading on the Toronto Stock Exchange.

The plunge came as the loyalty rewards company reported a loss of $1.44 per share for the quarter ended Dec. 31 compared with a loss of $57.2 million or 40 cents per share a year ago.

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The results in the most recent quarter included an impairment charge of $180.5 million related to the Nectar coalition loyalty program and U.K. ISS business.

Revenue totalled $398.6 million, down from $440.1 million in the last three months of 2016.

Aimia, which has been working to prepare for the end of its agreement with Air Canada, announced the sale of its Nectar program to British retailer Sainsbury — which was a founding partner of the program in 2002 — for $105 million earlier this month.

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