Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Loyalty NZ's annual sales gain 6.6% on demand for Fly Buys

Loyalty NZ's annual sales gain 6.6% on demand for Fly Buys


By Jonathan Underhill

Sept. 2 (BusinessDesk) - Loyalty New Zealand, which operates the Fly Buys loyalty programme used by companies including Air New Zealand, Z Energy and Contact Energy, posted a 6.6 percent gain in full-year sales, while profit was reduced by investment to drive growth.

Profit was $830,000 in the year ended March 31, from a record $2.7 million a year earlier, according to the Wellington-based company's annual report. Revenue rose to $91 million from $85.4 million.

Loyalty NZ is a quarter owned by each of Z Energy, BNZ, insurer IAG New Zealand and Foodstuffs Ventures (NZ), part of the cooperative that operates the New World and Pak'nSave supermarkets. In the latest year, members of the Fly Buys scheme claimed rewards worth $90 million, up from $82 million a year earlier. Operating expenses rose 10 percent to $89.8 million, including a 33 percent gain in employee costs to $11.7 million.

"We’ve invested heavily in the last year in the elements that will position Loyalty for future growth: people, branding and marketing, products, channels and technology," chief executive Stephen England-Hall said in emailed comments. "Issuance, redemption and revenue figures continue to climb year on year, reflecting the growing demand for Fly Buys points and the attraction of our retail offering."

The latest year included a record $11.3 million of rewards, based on the retail value of the products, redeemed in December, with more than 52 million points used for products and services. The number of products customers can buy with Fly Buys points has about doubled in the past two years, it said.

The 2015 accounts also show an 18 percent gain to $13.8 million for 'participant-based revenue', which includes non-rewards revenue from the firms that use the Fly Buys programme, fees for marketing campaigns and sales from its Lab360 unit.

Lab360 is Loyalty's full-service data and analytics business, which uses consumer spending data to "help businesses learn more about their customers and their markets," according to the company's website.

"We are developing our rewards offering and e-commerce channels and see improvement in these areas as a constant work in progress," England-Hall said.

Fly Buys has become a potential sticking point in Z Energy’s acquisition of the rival Caltex and Challenge! service station chains, with rival fuel company Mobil Oil New Zealand saying in a submission to the Commerce Commission that it would give Z Energy too much concentration of loyalty schemes. If the deal goes ahead, Z would have agreements with three of the four loyalty programmes - Countdown fuel discounts, Fly Buys and AA Smartfuel – giving the merged entity an unfair advantage over rivals, Mobil said

Loyalty New Zealand began the Fly Buys programme in 1996. It charges participating partner companies for the points they issue to Fly Buys members taking a margin after the cost of rewards is deducted.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>


Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

Statistics: Consents Remain At Record Levels
There were 47,715 new homes consented in the year ended October 2021, up 26 percent compared with the year ended October 2020, Stats NZ said today. "The year ended October 2021 marks another record for the annual number of new homes consented,” construction statistics manager Michael Heslop said... More>>



Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>


PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>