By: E&P Staff Metro International, a world-wide publisher of free commuter dailies, reported a third-quarter operating loss of U.S. $10.2 million on revenues that increased 20% over the same period last year to $74 million.
Luxembourg, Belgium-based Metro said its United States newspapers revenues leaped 32% to $7.7 million, fueled mostly by the launch of its New York City edition in May 2004.
Operating losses for its three U.S. newspapers -- Metro Philadelphia, Metro Boston, and Metro New York -- amounted to $2.6 million, which Metro said was the lowest quarterly loss for the group since the first quarter of 2004.
"Metro Philadelphia achieved a more than 10% year-on-year sales growth in the third quarter," the company said.
It noted that it had ended its subway distribution agreement with Philadelphia's mass transit agency SEPTA during the quarter, though it continues to be distributed on overland rail lines. "The operation has increased the proportion of newspapers delivered by hand distributors," the company said. "This change in the distribution has reduced Metro Philadelphia's total distribution costs, whilst at the same time it has increased the newspaper?s visibility in the downtown area. A further benefit of the change is that the increased employment of hand distributors has enabled Metro Philadelphia to better reach its targeted demographics."
It said its Boston paper, which is now 49% owned by The New York Times Co., "is strengthening after a disappointing start to the year." In September, the paper reported record monthly sales and operating profits, it said.
Metro New York recorded sales records in May, June, and September, the company said, with third-quarter revenues up by more than 50% from the first quarter.
"Metro New York halved its operating loss year-on-year in the third quarter," it said.
Metro said its three U.S. editions have an average daily circulation of almost 700,000, "making Metro the fifth largest general interest newspaper on the Eastern Seaboard and the sixth largest nationally."
This week, Metro launched its 59th daily, a national paper circulating in eight additional cities in Spain. The paper is the 11th it publishes in Spain.
Earlier this month, Metro also launched a newspaper in Dublin, Ireland.
Metro claims an international readership of 16.8 million.
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