A blog on issues affecting Australia's newsagents, media and small business generally.

Looking under the hood at the Ovato operation

Details loaded to the ASX website Friday provide an insight into Ovato, its magazine distribution operation and the outlook, more broadly, for magazines.

It’s worth reading the whole document as it presents a perspective of the Ovato business that could be different to how you see it from within your local newsagency business.

Further in the letter is this in relation to Market Hub:

Newsagents who want to comment on the proposed takeover of Ovato Retail Distribution by Are Media have until July 8 to do so. Click here for details.

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  1. Colin

    The summary of financial results and comments thereon reveal everything. Ovato has seen increased profitability in the last 3 years because publishers have paid more for distribution. This increase in margin has not been passed on to newsagents. They have suffered the full effect of the 33% decline in volumes in the same 3 years.

    This is a stitch up. It needs challenging. Ovato has been abusing it’s monopoly position and will continue to do so. These companies need newsagents. The channel needs to push back.

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