PMP, the parent company of magazine distributor Gordon and Gotch, released their 2009 full year results to the ASX on Friday. The announcement was accompanied by a presentation with details on their trading for the past year and plans for the next. The key magazine distribution information in the presentation of relevance to newsagents is:
- Magazine volume down 2.5% for the year and 3.4% for the second half.
- The partworks business is slowing.
- EBIT down 6.6% for the year.
- 60 redundancies in the Gotch and Scribo (book) business.
As these numbers show, newsagencies aren’t the only businesses in the magazine space with challenges.
Six years ago, Gordon and Gotch was the least popular magazine distributor supplying newsagents. Oversupply was rife, returns processing was problematic and internal policies around magazines were weak – meaning we would see unjustified reissues and other challenges.
Since 2004, Gordon and Gotch has transformed much of its magazine distribution business, lifting sell-through rates and introducing internal policies which see newsagents supplied on more equitable terms.
The operational changes cannot counter the impact of economic conditions nor the impact of disruption to the traditional print media model. These are challenges which we share with Gotch and which will drive the redefinition of both our business models.
One impact of the economic and disruption challenges I expect to see is a rationalisation in magazine distribution. While the magazine distributors are cutting costs internally, more significant savings would be achieved through maerging businesses.
Does anyone know if GG supplementry returns if done at the end of the month do they come off this months returns now that we have exchange it link or do they come off the following month ?