A partnership with Flight Centre Travel Group

 

FlexiGroup Ltd (ASX:FXL) is pleased to announce that, consistent with delivering on the key strategy of driving organic growth across its core business units, it has signed a significant new agreement with Flight Centre Travel Group Limited (ASX:FLT ‘Flight Centre’ ) to provide interest free finance to approved customers across Australia.

 

From today, FlexiGroup will enable Flight Centre to offer its customers the benefit of interest-free finance through its wholly owned subsidiary, Lombard Finance Pty Limited on their travel purchases across its retail travel brands, Flight Centre, Travel Associates, Cruiseabout, Student Flights and Escape Travel.

 

FlexiGroup was successfully appointed to provide this new program following an extensive and competitive tender process.

 

The agreement is expected to generate significant additional volumes for FlexiGroup and has the potential to more than double the Group’s card business’ revenue and profitability over the next several years. To initiate the program and commence operations FlexiGroup will make an investment of around $3m in FY17.

 

Flight Centre Australia Chief Financial Officer Mike Snyman said, "The development and launch of this new customer offer has been driven by consumer demand across our other brands as well as Flight Centre’s desire to deliver the best possible travel experience and payment flexibility to its customers. This interest-free offer will be available at all Flight Centre, Travel Associates, Cruiseabout, Student Flights and Escape Travel stores across Australia” he said.

 

FlexiGroup CEO Symon Brewis-Weston, said: “We are delighted to broaden our partnership with Flight Centre across its retail travel brands both in Australia and New Zealand. Flight Centre is a proven and powerful distribution partner and we look forward to extending and growing this new program with them. Flight Centre’s customers should find the ability to book and travel now and extend their repayments over a long term interest free period, a truly unique and beneficial payment option”.

 

‘‘Importantly, we have a clear strategy to return FlexiGroup’s core businesses to organic growth. This new agreement is a major step forward in executing our plan. We have a strong pipeline of additional new opportunities and we look forward to providing updates as we build this business back to profitable organic growth.

 

Monday, August 8, 2016