METRO INTERNATIONAL S.A.: FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2006
Luxembourg, 25th April 2006 - Metro International S.A. ("Metro") (MTROA, MTROB), today announced its financial results for the first quarter ended 31st March 2006. The Group's consolidated accounts have been prepared according to International Financial Reporting Standards (IFRS).
HIGHLIGHTS FOR THE PERIOD
- 20% year on year net sales growth at constant exchange rates
- 11% year on year increase in net sales to US$ 93.2 million (US$ 84.1 million)
- Record first quarter operating profit for subsidiary and associate newspaper operations of US$ 1.4 million (loss of US$ 3.6 million)
- 54% year on year reduction in total operating losses to US$ 3.9 million (US$ 8.4 million, excluding US$ 15.9 million gain from sale of shares in Metro Boston)
- 8 out of 17 subsidiary or associated country operations report profits
- Net loss of US$ 5.7 million (profit US$ 5.8 million)
- Weighted average basic loss per share of US$ 0.01 (profit of US$ 0.01)
Pelle Törnberg, President and CEO of Metro International, commented: "Metro has made an encouraging start to 2006 and we have begun to see the benefits of the measures taken during 2005 to further enhance our market positions around the world. The year on year sales growth rate accelerated from 13% in the fourth quarter of 2005 to 20% in the first quarter. The Group's newspaper operations have therefore been able to report a record combined first quarter operating profit, following a US$ 5 million improvement in operating profitability.
"The printing of 451 tonnes of paper by 49 print houses to create 8 million copies of 64 Metro editions in 18 languages, which are then delivered by 759 trucks to 91 major cities in 19 countries and placed in 22,654 racks and handed out by 2,470 hand distributors to be read by 18.5 million readers each day is a huge logistical exercise. We have further improved our operational focus in the last year with the introduction of a new management structure, which has enabled us to increase the speed and efficiency of our decision making and implementation.
"Metro Spain reported its first ever Q1 profit following the reorganization in 2005; Metro Sweden reported a 52% profit increase; the combined operating loss for the US operations was halved year on year; whilst the Dutch and Danish operations reported operating margins of over 15% in the Group's seasonally second weakest advertising sales quarter. We have a clearly differentiated model and audience profile, and continue to deliver sales and editorial innovations in order to capitalize on our unique market position and continued advertising market growth."
FINANCIAL SUMMARY
|
US$ 000s
|
Jan-March
2006
|
Jan-March
2005
|
Jan-Dec
2005
|
|
Net sales |
93,182 |
84,103 |
359,650 |
|
Operating profit (loss) for
subsidiary newspaper editions |
1,500 |
(3,428) |
8,667 |
|
Operating profit (loss) for associated companies |
(147) |
(142) |
(1,438) |
|
Operating profit (loss) for
other businesses |
(570) |
(445) |
(3,426) |
|
Operating profit (loss) for Headquarters |
(4,671) |
(4,357) |
(22,194) |
|
Sale of minority interest in subsidiary |
- |
15,884 |
15,884 |
|
Total operating profit (loss) |
(3,888) |
7,512 |
(2,507) |
|
Net interest & other financial items |
(990) |
(636) |
(2,659) |
|
Profit (loss) after financial items and before income tax
|
(4,878) |
6,876 |
(5,166) |
|
Net profit (loss)
|
(5,721) |
5,778 |
(6,971) |
|
Weighted average basic number of shares outstanding
|
526,151,287 |
525,910,189 |
526,003,109 |
|
Weighted average basic earnings (loss) per share (US$) |
(0.01) |
0.01 |
(0.01) |
OTHER INFORMATION
This interim report has not been subject to review by the Company's auditors.
2006 Annual General Meeting of shareholders
The 2006 Annual General Meeting will be held on 30 May 2006 in Luxembourg. Further information on how and when to register, as well as how to have a matter considered at the meeting, will be published in advance of the Annual General Meeting.
Conference call
The company will host a conference call today at 10.00 (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: +44 (0) 20 7162 0025
Sweden: +46 (0) 8 5052 0110
US: +1 334 323 6201
A replay facility will also be made available via the Company's website at www.metro.lu.
Date of next report
Metro's financial results for the second quarter and six months ended 30 June 2006 will be published on 25 July 2006.
Luxembourg, 25 April 2006.
The Board of Directors
Metro International S.A.
11 Boulevard royal
L-2449, Luxembourg
For further information, please visit www.metro.lu, email info@metro.lu or contact:
Pelle Törnberg, President & CEO tel: +44 (0) 20 7016 1300
Rob Newman, Corporate Communications tel: +44 (0) 7900 495 046
The full report including tables can be downloaded from the following link:
First Quarter Results - Statement
Metro is the largest and fastest growing international newspaper in the world. 64 Metro editions are published in 91 major cities in 19 countries in 18 languages across Europe, North & South America and Asia. Metro has a unique global reach - attracting a young, active, well-educated Metropolitan audience of over 18.5 million daily readers and more than 37 million weekly readers. Metro has an equal number of male and female readers and 70% are under the age of 45.