Joint Magazine Distribution

Joint Magazine Distribution

For release Tuesday 17 September 2002

Gordon and Gotch (NZ) Limited and Netlink Distribution Company announced today that they will be requesting tenders from freight contractors for the joint magazine distribution work of both companies throughout New Zealand.

Until now, the two magazine distribution companies have operated entirely separate delivery systems.

The new freight contracts will combine the volume of both companies, and will result in a more efficient service to magazine retail outlets, and a reduction in costs for the two distribution companies.

General Manager of Gordon and Gotch Lynley Belton and Netlink’s Operations Director Chris Gillan said that in some instances contractors were already delivering the magazines of both companies to the same range of outlets.

“Under the new structure, Gordon and Gotch and Netlink expect to see that practice expand nationwide.

“Freight is the most significant cost to the two companies after remuneration. Consolidating the deliveries of the two distribution companies with the same contractors should lead to real efficiencies.

“The two companies’ competitive positions in the magazine distribution market will not be affected by the joint freight contract as the key competitive element in magazine distribution remains the allocation and promotion of the products,” said Ms Belton and Mr Gillan.

The parties expect to have received tenders for the joint freight contracts by late October. They will continue to explore other areas where joint services could allow retailers to deal with a single contact point for both Gordon and Gotch and Netlink-distributed product.

Independent Newspapers Limited is New Zealand’s largest media company, publishing nine daily newspapers in New Zealand and one in Australia, plus New Zealand’s two Sunday newspapers and the news and information website www.stuff.co.nz. In addition INL publishes a range of other weeklies and national magazines, including TV Guide and NZ House & Garden, operates New Zealand’s largest magazine distribution business and publishes over 60 community newspaper titles in New Zealand and Australia. INL also holds a 66% interest in Sky Network Television Limited, New Zealand’s pre-eminent pay television service. INL had total assets as of 30 June 2002 of approximately $NZ2.1B and total annual revenues of approximately $NZ873M.

ENDS

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