The recent "Brexit" vote, in which the voters of the United Kingdom voted to exit the European Union, has roiled financil markets and sent multi-national corporations doing business in Britain into a period of turmoil. The loyalty industry, too, will feel the impact. The good news: The Globe and Mail reports that, while Montreal-based loyalty and data analytics provider Aimia derives a significant portion of its earnings from the Nectar coalition programme in the United Kingdom, the company does not expect Brexit to have a "significant impact" on its financial performance.
Money quote from the Aimia release:
"Aimia Inc. said today that declines in the GBP/CAD exchange rate would be unlikely to have a material mid-term impact on the company's financial results.
"In the near term, the company expects a period of uncertainty to prevail in the U.K. as the government determines its position with respect to the EU. Over the longer term, the company will evaluate the impact, if any, of the U.K.'s move to leave the EU to the business climate, regulatory environment, and trade flows.
"'We do not expect a material impact on Adjusted EBITDA or Free Cash Flow from a weaker pound, as the pressure on gross billings and operating costs from our U.K. business when the pound falls is counterbalanced by a reduction in costs related to global product development work that is also done in London,' said Rupert Duchesne, Group Chief Executive, Aimia."
That's good news for Aimia, and a brave new world for British companies trying to get a handle on the new reality. We'll keep you posted as to any further impacts on the UK loyalty industry.