Advo, Connecticut Post Sign Distribution Deal

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Direct marketer ADVO Inc. signed a five-year agreement with MediaNews Group's the Connecticut Post for the distribution of ADVO's direct mail advertising package in the paper, ADVO said last week.


The deal begins in September, and packages will be issued in a co-branded Connecticut Post-ShopWise wrapper. MediaNews Group Inc. and ADVO also are partners in the Denver market.


MediaNews Group Inc. is the nation's seventh largest newspaper company, with headquarters in Denver. MediaNews Group publishes 49 daily newspapers and 94 non-daily publications in 12 states with daily and Sunday circulation of approximately 2.1 million and 2.2 million, respectively.


ADVO, Windsor, CT, also reported that revenue and earnings were at the high-end of previously revised expectations for its third quarter, which ended June 29.


Revenue and diluted earnings per share were $280.9 million and 63 cents respectively, and operating income was $23.5 million, excluding a charge of $4.2 million designed to reduce costs. Including the charge, operating income and diluted earnings per share were $19.3 million and 50 cents, respectively.


Total advertising pieces were up 0.4 percent for the quarter. Packages distributed increased 6.4 percent over prior year to 853.6 million. Revenue per thousand pieces was essentially flat versus prior year at $39.81.


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