Metro International S.A.: Financial Results For The Third Quarter And Nine Months Ended 30th September 2006
Luxembourg, 24th October 2006 - Metro International S.A. (“Metro”) (MTROA, MTROB), today announced its financial results for the third quarter and nine months ended 30th September 2006. The Group’s consolidated accounts have been prepared according to International Financial Reporting Standards (IFRS).
HIGHLIGHTS FOR Q3 2006
* Net sales increased by 18% to US$ 87.1 million in Q3 ’06 (2005: US$ 74.0 million); at constant exchange rates, net sales improved by 11%.
* Group operating loss of US$ 8.9 million (2005: loss of US$ 10.2 million) prior to US$ 12.3 million book profit arising from the sale of operations in Finland.
* Contribution from subsidiary and associate newspaper operations: loss of US$ 2.3 million (2005: loss of US$ 3.7 million).
* Net profit of US$ 2.6 million, (2005: loss of US$ 12.2 million).
* Weighted average basic earnings per share of US$ 0.00 (2005: loss of US$ 0.02)
* Strategic sales alliance established in the Gothenburg market with Stampen AB.
NINE MONTHS ENDED 30 SEPTEMBER 2006
* 13% year on year increase in net sales to US$ 292.4 million (2005: US$ 258.4 million); representing 14% net sales growth at constant exchange rates.
* Group operating profit of US$ 6.0 million after US$ 12.3 million book profit arising from the sale of operations in Finland (2005: loss of US$ 8.0 million after profit from Metro Boston minority sale of US$ 15.9 million).
* Contribution from subsidiary and associate newspaper operations: profit of US$ 10.5 million (2005: loss of US$ 4.0 million).
* Net profit of US$ 1.5 million, (2005: loss of US$ 12.9 million).
* Net debt reduced by US$ 3.8 million (from US$ 23.0 million as at 31st December, 2005 to US$ 19.2 million as at 30th September, 2006).
Pelle Törnberg, President and CEO of Metro International, commented: “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.”
“Our third quarter EBIT, excluding non recurring items, was a loss of US$ 8.9 million, which is 13% better than the previous year. In the nine months to September we have delivered an operating profit result improvement of US$ 17.6 million compared to the equivalent period in 2005. With the Finland transaction we are on track at the end of Q3 to deliver a net profit this year.”
“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. 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. In response to these developments and to reinforce our focus on growing Metro’s market positions, sales and profitability, our senior management team was further strengthened and a new organization structure was put in place during the third quarter. 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.”
Metro is the largest and fastest growing international newspaper in the world. 70 Metro editions are published in 93 major cities in 21 countries in 19 languages across Europe, North & South America and Asia. Metro has a unique global reach - attracting a young, active, well-educated Metropolitan audience of 18.5 million daily readers and more than 38 million weekly readers. Metro has an equal number of male and female readers, of which 70% are under the age of 45. Metro’s advertising sales have grown at a compound annual rate of 44% since the launch of the first edition in 1995.
Metro International S.A. ’A’ and ’B’ shares are listed on the Stockholmsbörsen ’O-List’ under the symbols MTROA and MTROB.
The company will host a conference call today at 15.00 (CET). The call will also be webcast on Metro’s website at www.metro.lu. To participate in the conference call, please dial in on the following numbers:
UK / International: +44 (0)20 7806 1951
Sweden: +46 (0) 8 5352 6458
US: +1 718 354 1387
A replay facility will be available shortly after the conclusion of the call. To access the replay, please dial the following numbers:
UK / International: +44 (0)20 7806 1970
Sweden: +46 (0) 8 5876 9441
US: +1 718 354 1112
The replay access number is 6194141#
- Contact Information
- Pelle Törnberg
- President & CEO
- Metro International S.A.
- Contact via E-mail
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