Smiths News secures fresh contract with Telegraph Media Group

10th Jan 2023 10:36

(Sharecast News) - Smiths News has secured a new contract with Telegraph Media Group, one of its largest clients.

Smiths News - which distributes newspapers and magazines to retailers - said on Tuesday that the contract with TMG, the publisher of the Daily Telegraph and Sunday Telegraph, represented 11% of newspaper and magazine revenues.

The contract, which runs until 2029, covers all of Smiths News' current distribution territories in the UK.

Jon Bunting, chief executive, said the deal marked "a further step in securing our newspaper and magazine revenues for the long term".

"The Telegraph represents over 10% of our revenues and we look forward to further developing our close working relationship with them in the years ahead."

The deal renewal follows similar five-year deals recently struck with Associated Newspapers - publisher of the Daily Mail - and Frontline and Seymour, the magazine distributors. Smiths News said it had now secured long-term contracts with 46% of its newspaper and magazine revenues.

As at 1030 GMT, shares in the London-listed firm were ahead 1% at 55.4p.

Peel Hunt, which has an 'add' recommendation on the stock, noted: "The new contracts confirm Smiths News' leading position in the sector, [with] 55% market share."