24th Sep 2014 07:00
LONDON (Alliance News) - Connect Group PLC Wednesday said it has extended its newspaper wholesaling agreement with Guardian News and Media for a further five years until February 2021.
The contract extension, signed through its Smiths News division, is valued at GBP63 million per year. This means Smiths News has secured GBP1.2 billion of revenue per year through to 2019. The new deal secures the company's existing 60% market share of Guardian News and Media's distribution business.
Guardian News and Media publishes both The Guardian and The Observer, which Connect said sell 180,000 and 200,000 papers per day respectively.
"We are delighted to have extended our relationship with Guardian News and Media, securing another significant publisher agreement for our newspaper and magazine distribution business. With 84% of newspaper distribution revenues secured to 2019 and beyond, this further endorses our market leading proposition," said Chief Executive Mark Cashmore in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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