Connect Group extends newspaper deal with Guardian News

Connect Group on Wednesday announced that its Smiths News business has extended its newspaper wholesaling agreement with Guardian News and Media until February 2021.

The new £63m-a-year agreement secures the existing 60% market share of Guardian News and Media's distribution business for an additional five years.

Guardian News and Media publishes both The Guardian and The Observer, which sell 180,000 and 200,000 papers per day respectively.

The deal means that Smiths News, which is part of the company's connect news & media division, has now secured around £1.2bn of annual revenue through to 2019, equal to 84% of total sales.

Chief executive officer Mark Cashmore said: "We are delighted to have extended our relationship with Guardian News and Media, securing another significant publisher agreement for our newspaper and magazine distribution business.

"With 84% of newspaper distribution revenues secured to 2019 and beyond, this further endorses our market leading proposition."

Connect shares were up 0.7% to 151p at 09:00 on Wednesday.