Metro International makes €6.4m first-quarter loss

by Daniel Farey-Jones Brand Republic 21-Apr-08, 11:00

LONDON - Free newspaper company Metro International has reported a first-quarter net loss of €6.4m (£5.1m) after its revenues fell by 6% year on year to €73.4m.

The company is reporting in Euros for the first time, after deciding to change from dollars to reduce the translation effect of the weakening US currency on its results. Most of its revenues come from its European operations.

Quarterly revenues fell year on year because of closed and divested operations in the Czech Republic, Sweden and Poland, as well as difficult market conditions for advertising, especially in Spain, Denmark and the US.

However, the company cut its costs by around €7m and was able to reduce its quarterly net loss from €10.8m to €6.4m.

It made 27 redundancies in January at its US operations, which include Metro editions in New York, Philadelphia and Boston (a joint venture with the New York Times). It has taken a charge of $300,000 in the first quarter for the restructuring costs.

Metro International launched a new website, earmarked for global rollout, in France on March 24. According to chief executive and president Per Mikael Jensen it is "enjoying a good response and is meeting expectations".