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ADS Inks Deal with Eastlink

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The Canadian Loyalty business of Alliance Data Systems Corporation (ADS - Free Report) inked a multi-year agreement with Eastlink, whereby the latter will issue AIR MILES reward miles in Atlantic Canada's four provinces.

Owned by the Bragg Group, a privately held business based in Nova Scotia, Canada, Eastlink operates in eight Canadian provinces and Bermuda. Eastlink provides video entertainment and communication services to residential, business and public sector customers.

Effective Jun 19, Eastlink has started issuing reward miles for several products and services and will continue throughout the promotional period. Additionally, it will offer AIR MILES reward miles on purchase of HD, DVR, pre-authorized payment services and e-billing subscriptions.

Subsequently, AIR MILES reward miles can be redeemed for more than 1,200 different rewards, including travel, movie passes, entertainment attractions and electronic merchandise.  With this liaison, Eastlink will be able to better serve its customers by offering them reward miles.

With more than 60% of the Canadian household collecting reward miles, the AIR MILES Reward Program has positioned itself as Canada's premier coalition loyalty program.

Following the agreement, Eastlink not only joins the group of more than 220 sponsors offering AIR MILES reward miles but also becomes the first full-service telecommunication company in Canada to offer the Atlantic Canadians AIR MILES reward miles.

Earlier, in May, the Canadian Loyalty business of Alliance Data inked a multi-year agreement with Irving Oil, whereby the latter will issue AIR MILES reward miles. To date, this agreement marks the second such deal inked by Alliance Data’s Canadian Loyalty business.

In the last reported quarter, AIR MILES’ reward miles at Alliance Data issued decreased 3% year over year. We expect that such deals will help Alliance Data bounce back on to the growth trajectory again.

Alliance Data currently carries a Zacks Rank #4 (Sell). Among other financial transaction service providers, Vantiv, Inc. carrying a Zacks Rank #1 (Strong Buy) and Official Payments Holdings Inc. and Fidelity National Information Services, Inc. (FIS - Free Report) , carrying a Zacks Rank #2 (Buy) are worth noting.

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