11.5 million dollar loss for Metro International
Metro International's results for the first quarter were less than encouraging. Contributing factors included the closure of the Polish edition of Metro, management issues at the Swedish edition, and challenging regional market conditions in the U.S.
Metro International's performance in the first quarter was less than satisfactory. The closure of the Polish Metro newspaper, management problems at the Swedish edition and strict regional market conditions in the USA contributed to this, according to a press release issued on Monday, Metro International made a loss in the first quarter. Costs were caused by increased investments in the head office structure (global sales, IT team and higher management) and a 10 percent increase in circulation. In addition, the closure of the Polish edition alone caused costs of 1.7 million dollars.
The reasons for Metro International's high loss are manifold: In Sweden, management left much to be desired and the number of advertising sellers decreased. In Spain, the result was influenced by price pressure in Madrid. In France, the poor result is due to a weakening of key segments of the advertising market. Expectations in the US market were not met due to strict regional market conditions.
Good prospects
The results in Chile, Hong Kong, Portugal and Holland are encouraging and on April 16, the Swedish government granted all free newspapers a five percent reduction in advertising taxes. Metro International continues to invest in new editions in Mexico, Portugal, Sweden, Canada and Brazil, which will initially cloud the results and should be profitable over time. Metro International has been in existence since 1995 and has a readership of over 20 million people.
The reasons for Metro International's high loss are manifold: In Sweden, management left much to be desired and the number of advertising sellers decreased. In Spain, the result was influenced by price pressure in Madrid. In France, the poor result is due to a weakening of key segments of the advertising market. Expectations in the US market were not met due to strict regional market conditions.
Good prospects
The results in Chile, Hong Kong, Portugal and Holland are encouraging and on April 16, the Swedish government granted all free newspapers a five percent reduction in advertising taxes. Metro International continues to invest in new editions in Mexico, Portugal, Sweden, Canada and Brazil, which will initially cloud the results and should be profitable over time. Metro International has been in existence since 1995 and has a readership of over 20 million people.
