Metro International S.A. ("Metro International"), the world's largest
international newspaper, announces that it is discontinuing the
activities of its fully owned operation in Spain, Metro News S.L.
("Metro Spain"), which publishes the free daily newspaper Metro in
seven Spanish cities. Thursday 29th January 2008 was the last day of
publication for Metro. Prior to the closure of our Spanish
operations, Metro was the fifth most read daily newspaper in Spain
with more than 1.8 million daily readers.[1]
Metro in Spain was successfully launched in 2001 and by 2004 had
achieved profitability. However, with increased competition and a
steadily declining advertising market the operation has been
experiencing losses during the last years. Several merger
opportunities have been investigated during 2008, however, the size
of the combined losses of the Spanish free press market made it
extremely difficult to find an alternative that would have improved
the future financial performance of Metro Spain.
Metro International has invested ? 25.5 million in Metro Spain up
until the closure of the business announced on 29th January 2009. The
closure is expected to give rise to a book loss of between ? 5-6
million which includes non-cash items. The cost of closing Metro
Spain will be accounted for in Metro International's results for the
first quarter 2009.
Per Mikael Jensen, CEO and President of Metro International said:
"Despite dedicated efforts from our Spanish management team and
staff, it is with deep regret that we have taken the difficult
decision to close down our operations in Spain. Even though Metro in
Spain has been losing less money than its Spanish free competitors,
the worsening Spanish economic down turn, which during the beginning
of 2009 has resulted in a collapsing advertising market, has now
resulted in unsustainable losses. The stiff competition coupled with
a forecasted continued weakening advertising market for Spain, makes
the closure of our operations the only rational decision at this
time. A continued investment in Spain cannot be justified at this
point and we are therefore focusing our resources on growth areas
where we can create long term shareholder value."
Martin Alsander, Executive Vice President of Metro International
said: "I would like to thank our staff in Spain for their great
efforts and hard work during these difficult times. Thanks to this
group of excellent people we have managed to produce a highly
regarded newspaper throughout Spain. Despite the very best efforts of
Metro Spain's capable employees we deemed the obstacles they faced to
be insurmountable."
[1] EGM 2008-3
For further information please contact:
Per Mikael Jensen, CEO and President tel: +44 (0)20 7016
1300
Martin Alsander, Executive Vice tel: +44 (0)20 7016
President 1300
Ingrid Selden, IR contact tel: +44 (0)77 2524
5881
***
ABOUT METRO INTERNATIONAL AND METRO
Metro is the largest international newspaper in the world. Metro is
published in over 150 major cities in 19 countries across Europe,
North & South America and Asia. Metro has a unique global reach -
attracting a young, active, well-educated Metropolitan audience of
over 17 million daily readers. Metro International S.A. 'A' and 'B'
shares are listed on the Stockholmsbörsen 'O-List' under the symbols
MTROA and MTROB.
Metro International 'A' and 'B' shares are listed on the OMX Nordic
Exchange's Nordic List under the symbols MTRO SBD A and MTRO SBD B.
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
http://hugin.info/132142/R/1285808/288419.pdf
Copyright © Hugin AS 2009. All rights reserved.
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