Why the Flexiroam (ASX:FRX) share price opened 7% higher today

The Flexiroam (ASX:FRX) share price jumped higher this morning after the company announced an agreement to expand its partnership network.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Flexiroam Ltd (ASX: FRX) shares opened 7.4% higher at 5.8 cents this morning after the company announced a joint marketing agreement to expand its partnership network. However, at the time of writing, the Flexiroam share price has retreated back to 5.4 cents, flat for the day so far.

Let's take a look at what the mobile network operator announced.

What boosted the Flexiroam share price this morning?

Investors were temporarily pushing the Flexiroam share price higher this morning after digesting the company's latest update.

According to its release, Flexiroam has signed a joint marketing agreement with Travala.com.

Founded in 2017, Travala.com is a leading cryptocurrency-based travel booking service with over 2 million properties listed worldwide.

Under the agreement, Travala.com customers will be offered a US$25 Flexiroam eSIM with a 500-megabyte global data plan when booking through the platform. In return, Flexiroam users will be provided with a US$25 Travala.com credit voucher when making any Flexiroam purchase.

Both companies will engage in promoting the deal through the use of marketing programs.

The agreement will run for an initial period of 12 months, and be limited to 100,000 customers from each of Travala.com and Flexiroam.

This follows a previous contract Flexiroam signed with buy now, pay later company Splitit Ltd (ASX: SPT) earlier this month. Flexiroam is seeking to capture some of the untapped market in Malaysia and Singapore.

Flexiroam noted that the material impact of its latest agreement is not yet known due to the variable nature of the commission. This will be calculated based on customer usage of the Travala.com booking platform which cannot be accurately predicted.

Management commentary

Flexiroam managing director Jef Ong welcomed the new partnership, saying:

We are excited to be partnering with Travala.com, a leading cryptocurrency travel agency and the agreement will allow our Flexiroam Wallet customers to gain Travala.com credits for booking flights, hotels and holiday activities. We plan to commence joint marketing campaigns with Travala.com, to promote this initiative to our customers.

The Flexiroam share price has jumped more than 300% over the past 12 months, with most of these gains coming this year. Flexiroam shares reached a 52-week high of 9.6 cents in early February.

Motley Fool contributor Aaron Teboneras owns shares of Splitit Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A woman wearing dark clothing and sporting a few tattoos and piercings holds a phone and a takeaway coffee cup as she strolls under the Sydney Harbour Bridge which looms in the background.
Broker Notes

The smartest Australian stocks to buy with $400 right now

Let's see why these shares are highly rated by brokers.

Read more »

Woman and man calculating a dividend yield.
Share Market News

What ASX 200 investors just learned about the next RBA interest rate move

Will ASX 200 investors get a much-awaited interest rate cut in August?

Read more »

person with large headphones looking puzzled holding their hand to their chin.
Broker Notes

Does Macquarie prefer Harvey Norman or JB Hi-Fi shares?

Both companies have market-beating long-term track records.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A blockchain investor sits at his desk with a laptop computer open and a phone checking information from a booklet in a home office setting.
Broker Notes

Are non-bank lenders a lucrative alternative to the big 4 banks?

The big 4 banks are widely perceived as being fully valued or overvalued.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why CBA, Inghams, Praemium, and Strike Energy shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.
Broker Notes

3 reasons to buy this booming ASX All Ords tech stock today

A leading broker forecasts more gains to come from this surging ASX All Ords tech stock.

Read more »