By: Mark Fitzgerald Metro International S.A., the big global publisher of free commuter dailies, reported on Monday a second-quarter operating loss of 3 million euros (US $4.27 million) on revenue that plunged 26%. In the same period a year ago, Metro reported an operating profit of 0.6 million euros (US $82,000).
Adjusted for currency movements and on a same-property basis, net revenue declined by 12%, Metro said.
In June, Metro exited the U.S. market, selling its papers in markets including New York City and Philadelphia to Seabay Media, which continues to publish them under a licensing agreement.
Metro President and CEO Per Mikael Jensen said the sale of the U.S. papers and the divesting of its Portugal papers was part of a strategy to work for short-term profits while growing the business long-term. He said seven of 10 "controlled operations," where Metro owns papers outright, recorded operating profits in the quarter, as did four of five "associated operations," where it publishes in partnerships or franchises the Metro name and format.
Jensen suggested Metro was prepared to cut unprofitable papers quickly. "Management is monitoring the development of every Metro operation very closely and is in a position to react quickly to any further negative changes in advertising sales," he said. "We have duly managed to minimize the effects of the global economic recession on our business. I think this proves the competitive strength of Metro as a sustainable business model."
For long-term growth, Jensen noted Metro's expansion in Russia and the relaunch last week of two Ecuador editions of Metro under a partnership with the Ecuadorian media company Grupo Hoy.
"Metro St. Petersburg is one of Metro International's fastest growing and most profitable operations and we are very pleased to be involved with this company," he said.
Comments
No comments on this item Please log in to comment by clicking here