Aimia Inc. (TSE:AIM), a credit card loyalty program manager, rose to the highest in three months after raising it dividend by 6 percent even as it reversed to first-quarter loss.
The shares retreated to C$19.59, the lowest intraday price since Feb. 7, and were trading at C$19.20, up 4.2 percent, at 2:15 p.m. in Toronto.
Aimia increased its quarterly dividend a penny, or 5.9 per cent, to 18 cents per share "in line with annual policy," the Montreal, Quebec-based company said in a statement late yesterday.
Aimia reported a net loss of $16.3 million, or 13 cents per share, in the three months ended March 31, compared to profit of $45.7 million, or 22 cents per share, in the year-earlier period.
Adjusted earnings were 48 cents, above analyst expectations of 34 cents, according to Thomson Reuters.
Revenue slid slightly to $608.9 million from $609.5 million a year earlier.
Aimia owns and operates the Aeroplan rewards program in Canada and operates or has stakes in other such programs around the world.
Aimia touted its new alliance with TD Bank (TSE:TD), which replaced CIBC (TSE:CM) as its main partner this year. Prior to the switch, CIBC had been the main issuer of Aeroplan credit cards for more than 20 years.
"Our partnership with TD has resulted in a successful launch and we are seeing strong momentum in both our TD and AMEX relationships thanks to the refresh of the Aeroplan program," Aimia Chief Executive Officer Rupert Duchesne said in the statement.
"Aeroplan members' activity levels suggest that the changes we made to the program were the right ones and are delivering value to them, with rewards issued up nine per cent in the quarter."