Smiths News (LSE:SNWS), the UK's largest news wholesaler, on Thursday announced it has won a new long-term exclusive distribution contract with Telegraph Media Group Holdings, publisher of The Daily Telegraph and The Sunday Telegraph.
The agreement expands Smiths News's exclusive wholesale territory for the titles to cover all of Great Britain from October 2027 and extends the contract term through to September 2036, with the expanded territories expected to add approximately £40m of annual revenue from October 2027.
The deal is the fifth national distribution contract Smiths News has struck since June, following agreements with News UK (worth approximately £125m of additional annual revenue from July 2027), Associated Newspapers (approximately £105m from January 2028), and Frontline and Seymour Distribution (a combined approximately £105m from April 2030).
Smiths News said the five contracts together now secure approximately 61% of the national newspapers and magazines market at the point each agreement takes effect.
"This represents another key step in expanding our network footprint to cover the whole of Great Britain, ensuring that consumers are able to access and consume news and magazine content for many years to come," chief executive Jonathan Bunting said.
Delivery of all five contracts depends on building an expanded national footprint, and the company said guidance on implementation costs, early-life transition costs, network expansion benefits, and dividend and financing arrangements remains unchanged from its 17 June update.
The board expects to provide further financial guidance on the combined impact of all five contracts at its preliminary results on 4 November.