Mogo extends Postmedia promotional agreement
Vancouver-based financial technology company Mogo has extended its promotional agreement with Postmedia until the end of 2020. The original agreement, formed in 2016, provided the company with a minimum of $50 million in Postmedia media space over three years. In exchange, Mogo agreed to pay Postmedia a percentage of its revenues, as well as warrants to purchase shares in the company. Through this extended agreement, Mogo will receive a similar minimum annual media value from Postmedia, while Postmedia will receive a fixed cash quarterly payment of approximately $525,000.
Via this agreement, the two companies collaborate on marketing Mogo products including loans, pre-paid credit cards and mortgages. These promotions take place nationally in properties such as the National Post, Financial Post, Toronto Sun, Vancouver Sun, Ottawa Citizen, Calgary Herald, Canada.com, Driving.ca and Canoe.com.
"Postmedia has been an excellent partner and this relationship has been highly successful in driving Mogo's brand awareness, but perhaps more importantly, Mogo's credibility and trust with consumers," said Greg Feller, president and CFO of Mogo. "This is clearly demonstrated by both the growth in our member base, which has more than tripled since the start of the collaboration, as well as the accelerating growth of our subscription and fee based revenue. As we build Mogo into the go-to financial app for the next generation of Canadians, the Postmedia relationship is a significant asset and advantage, allowing us to fuel new product launches and invest significantly in our brand in a capital-efficient manner."