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Metro International S.A. is a Luxembourg limited-liability company
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FINANCIAL RESULTS FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED 31ST DECEMBER 2006
13 February 2007
Luxembourg, 13th February 2007 - Metro International S.A. ("Metro International" or the "Company") (MTRO SBD A, MTRO SBD B), today announced its financial results for the fourth quarter and twelve months ended 31st December 2006. The Group's consolidated accounts have been prepared according to International Financial Reporting Standards (IFRS).
HIGHLIGHTS FOR Q4 2006
- Net sales increased by 23% to US$ 124.1 million in Q4 '06 (2005: US$ 101.3 million); at constant exchange rates, net sales improved by 15%.
- Group operating profit of US$ 10.9 million (2005: profit of US$ 5.5 million).
- Contribution from subsidiary and associate newspaper operations: operating profit of US$ 17.2 million (2005: profit of US$ 12.3 million).
- Net profit of US$ 11.5 million, (2005: US$ 5.9 million).
- Basic earnings per share of US$ 0.02 (2005: US$ 0.01).
TWELVE MONTHS ENDED 31ST DECEMBER 2006
- 16% year-on-year increase in net sales to US$ 416.5 million (2005: US$ 359.7 million).
- Group operating profit of US$ 16.9 million after US$ 12.3 million book profit arising from the sale of operations in Finland (2005: loss of US$ 2.5 million after profit from Metro Boston minority sale of US$ 15.9 million).
- Contribution from subsidiary and associate newspaper operations: operating profit of US$ 28.6 million (2005: profit of US$ 7.4 million).
- Net profit of US$ 13.0 million, (2005: loss of US$ 7.0 million).
- Net debt reduced by US$ 6.3 million (from US$ 23.0 million as at 31st December 2005 to US$ 16.7 million as at 31st December 2006).
- Basic earnings per share of US$ 0.02 (2005: loss of US$ 0.01).
- Pelle Törnberg will be stepping down as President and CEO of Metro International during the course of 2007. The Board of Metro International has started the process of recruiting a new President and CEO and further announcements on this process will be communicated in due course.
Pelle Törnberg, President and CEO of Metro International, commented: "2006 has been a landmark year for Metro International. We have delivered our first net profit and been awarded the prestigious accolade of "World's largest global newspaper" by Guinness World Records."
"The 4th quarter is traditionally our strongest quarter and this year was no exception. We delivered a strong sales increase of 15% at constant exchange rates across the Group and doubled Group operating profit to US$ 10.9 million compared to last year. Newspaper editions operating for more than 3 years improved their profit margins by 40% year-on-year, maintaining the profitability reported in previous quarters. Excluding Finland and Poland, Metro International delivered a 15.9% profit margin from newspapers more than 3 years old."
"The TNS Pan-European Readership Survey, conducted in October and November, reports that Metro is now well established as the most read newspaper in Europe, reaching 15.1 million daily readers, up 25% in the last 6 months. Worldwide our readership is over 20 million. The advertising footprint we offer is larger than our corporate network through the development of strategic partnerships - e.g. our commercial relationships in the UK and Belgium now add an additional 2.8 million readers."
"For the full year, sales at constant rates increased by 15% and an operating profit improvement of US$ 19.4 million delivered an operating profit of US $16.9 million. This includes US $12.3 million from the sale of Finland. Excluding disposals, we generated an operating profit of US$ 4.5 million compared to an operating loss of US$ 18.4 million in 2005 on the same basis. This US $22.9 million profit improvement came from better performance in the US, Spain, Sweden and other markets."
"Net profit for the year improved by US $20.0 million to US $13.0 million. Excluding the Finland disposal, the Group generated a net profit of US$ 0.5 million."
"In Sweden, we have requested a review of the advertising tax position. This issue was reported in the 2005 annual report. As part of this, a prior year ad tax charge of US$ 4.2 million has been recorded causing an increase to deferred tax assets of US $1.1 million, resulting in a net charge to equity of US$ 3.1 million."
"Competition increased sharply in 2006. 230 free daily titles are published in 41 countries with a combined circulation of 34.8m daily copies (including Metro), up 43% year-on-year."
"Despite this increased competition, Metro's position as the world's largest global newspaper, our strong brand and unique global advertising proposition continue to attract quality advertisers and deliver sales growth and improving margins. To support our continuing growth and improve focus on our markets, the senior management team was strengthened and a new organization structure put in place. We have launched online businesses in four countries in 2006 and in the next 18 months we will extend our online presence with new look websites to truly establish a global online footprint."
For further information, please visit www.metro.lu, email info@metro.lu or contact:
Pelle Törnberg, President & CEO tel: +44 (0) 20 7016 1300
ABOUT METRO INTERNATIONAL AND METRO
Metro is the largest and fastest growing international newspaper in the world. Metro is published in over 100 major cities in 20 countries across Europe, North & South America and Asia. Metro has a unique global reach - attracting a young, active, well-educated Metropolitan audience of over 20 million daily readers. Metro International's advertising sales have grown at a compound annual rate of 41% since the launch of the first edition in 1995.
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.
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 register by clicking on the following link:
http://www.mamato.se/clients/fine/metro/q4_2006_reg/
The full report with tables can be downloaded from the following link: