May 12 (Reuters) - Shares of Groupe Aeroplan AER.TO, which operates Air Canada’s ACa.TO frequent flier program, fell more than 5 percent Wednesday, a day after it posted lower-than-expected quarterly profit hit by higher expenses.
For 2010, Groupe Aeroplan sees gross billings in its legacy businesses growing by 2 percent to 4 percent.
Shares of Montreal, Quebec-based company fell 5 percent to C$10.35 in morning trade Wednesday on the Toronto Stock Exchange.
For the first quarter, net income was C$14.9 million ($14.59 million), or 7 Canadian cents per share, compared with C$23.2 million, or 12 Canadian cents apiece a year ago.
Adjusted earnings per share was 20 Canadian cents a share.
Revenue rose 42 percent to C$506.8 million.
Analysts on average had expected the company to earn 21 Canadian cents per share on revenue of C$514.8 million, according to Thomson Reuters I/B/E/S.
Gross billings rose nearly 50 percent to C$517.9 million.
Expenses for the quarter more than doubled to C$146.4 million, mainly due to the integration of Carlson Marketing and the launch of its Nectar Italia loyalty program. ($1=1.021 CANADIAN DOLLAR) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Don Sebastian)