- Media company IVE Group (IGL) says Coles will no longer send out its weekly catalogues in the mail
- The weekly catalogue is currently printed and distributed by IVE and the company is expecting to lose up to $40 million annually due to the drop
- Coles has indicated it will increase the volume of the catalogues in its stores and will continue to produce its monthly magazine
- IVE will evaluate the full impact on the reduction in revenue and update the market on its 2020 financial year results on August 25
- Company shares are down 20.6 per cent on the market today and are trading for 63.5 cents per share
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.