AA memberships grows, paid members decline after scrapping free roadside membership
Source - SMW
AA said new members grew 7% for the year ended 31 January 2018, and expects to deliver earnings in line with guidance of between £390m and £395m.
The rise in new members for the year comes despite the challenges of passing through insurance premium tax increases and the costs arising from regulatory changes. Retention for the year was broadly flat at 82%.
Paid members declined by circa 1% to 3.29m as a result of the discontinuation of free roadside membership for AA insurance customers from December 2015. As a result the company no longer had this free-to-paid conversion pipeline, representing an impact on paid membership of circa 70,000.
Total number of breakdowns rose in the year by 1% to 3.68m, resulting in increased costs of third-party garaging to supplement the company's own patrol availability.
At 8:15am: (LON:AA.) AA Plc share price was +11.48p at 144.83p