Metro International on track to deliver net profit in 2006

Nordic Business Report, Oct 24, 2006

NORDIC BUSINESS REPORT-24 October 2006-Metro International on track to deliver net profit in 2006(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

The Swedish-controlled international newspaper group Metro International SA issued its third quarter report on Tuesday (24 October), posting an operating loss of USD8.9m, as compared to a loss of USD10.2m in the third quarter of 2005.

The result for the third quarter this year excludes a USD12.3m book profit from the sale of operations in Finland.

Net sales amounted to USD87.1m, up by 18% from USD74.0m in the third quarter last year.

"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," said Pelle Tornberg, president and CEO of Metro International.

"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," Tornberg added.

"With the Finland transaction we are on track at the end of Q3 to deliver a net profit this year," Tornberg concluded.

Metro International, headquartered in Luxembourg, publishes Metro editions in 93 major cities in 21 countries, and has 18.5m daily readers. The company is listed on the Nordic Exchange in Stockholm.

One British pound (GBP) is worth approximately 1.86 US dollars (USD).

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