Metro International Announces Q3 And Nine Month Results

Metro International recorded a group operating loss of $8.9 million (2005: loss of $10.2 million) prior to $12.3 million book profit arising from the sale of operations in Finland.

Net profit for Q3 was $2.6 million, (2005: loss of $12.2 million).

For the nine months ended September 30, Metro International recorded a 13% year on year increase in net sales to $292.4 million (2005: $258.4 million), representing 14% net sales growth at constant exchange rates.

The group also recorded operating profit of $6.0 million after $12.3 million book profit arising from the sale of operations in Finland, and net profit of $1.5 million (2005: loss of $12.9 million).

Pelle Tornberg, president and CEO of Metro International, said: “During the third quarter, which is the seasonally weakest period for the group, we have continued our progress in developing the capabilities and performance of the company.

“Our under-performing business in Finland was divested and will contribute a franchise income in the future. Newspaper editions operating for more than three years have improved their operating profit margin by 30% year on year, maintaining the profitability reported in our record second quarter despite recent increased circulation costs and some weakness in advertising demand during the summer, caused in part by the FIFA World Cup.

“Although competition is intensifying in nearly all of our markets, Metro’s advantage of scale, the strength of our brand and our unique global advertising offers are enabling us to withstand the competitive pressures in our sector.

Tornberg added: “With over 31 million free daily newspapers now in circulation across the world, the concept which Metro has pioneered and continues to lead is firmly established.

“To further underpin Metro’s longer-term prospects, we have also been able to increase our multi-currency credit arrangements from US$75 million to US$ 90 million and extend the facility to the end of 2011.”