Kids looking for delivery routes as their first job have perhaps had the opportunity taken away from them thanks to technology, with Coles (ASX: COL) ending delivery of their weekly catalogues to more than 7 million Australian households.
Printed copies of catalogues will still be available in-store but the 14,000 walkers managed by marketing company IVE Group (ASX: IGL) will need to fill their delivery trolley with other print advertising.
The decision by Coles to shift their weekly catalogues towards online-only mediums is expected to reduce IVE Group’s annual revenue by $35-40 million with the marketing company also expected to log a significant goodwill impairment.
The news had an immediate impact on IGL shares which traded as low as $0.615 before midday, a decline of 23% on their previous day’s close of $0.80.
For the half-year ending 31 December 2019, IVE Group reported $360.2 million revenue for $17.2m NPAT. Due to COVID-19 however, the Company elected to cancel its interim dividend of 8.6c per share.
IVE Group will update the market on their FY20 results on August 25.
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