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IVE Group (ASX:IGL) to lose $40M annually as Coles catalogues go digital

Media
ASX:IGL      MCAP $322.9M
11 August 2020 13:45 (AEDT)

Source: FutureCIO

Media company IVE Group (IGL) is expecting to drop up to $40 million per annum in revenue after Coles scaled back its printed catalogues.

From September 9, Coles will drop the household distribution of its weekly catalogue, which is currently printed and distributed by IVE. The catalogue reaches around seven million Australian households weekly through roughly 14,000 walkers.

However, Coles has indicated it will increase the volume of catalogues available in-store and continue to produce its monthly magazine.

However, this has put a big dent in IVE Group’s revenue — the company is expecting a loss of approximately $35 million to $40 million per annum.

Now, IVE will evaluate the full impact of the revenue reduction in revenue and will update the market on its 2020 financial year results on August 25.

“The group remains committed to supporting the continued strength of the printed catalogue as an important component of an integrated communications mix to a diverse national customer base,” IVE said.

IVE is down 20.6 per cent on the market today and is trading for 63.5 cents per share at 12:52 pm AEST.

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