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Metro International S.A. is a Luxembourg limited-liability company
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Metro International signs joint venture and franchise agreement in Ecuador
14 July 2009
Metro International S.A. ("Metro International"), the international newspaper group, today announced that it has entered into a joint venture and franchise agreement in Ecuador with the leading media group Grupo Hoy, which publishes the existing free newspapers Metro Hoy in Quito and Metro Quil in Guayaquil (together "Metro Ecuador"). Grupo Hoy is also engaged in other media business such as paid newspapers, TV, radio, internet and mobile services.
Metro Ecuador will be re-launched under Metro International's global newspaper format on the 15th of July 2009. For this purpose, a new Joint Venture Company Diarios Unidos Del Ecuador S.A ("DIUNESA") has been incorporated and has acquired 100% of Metro Ecuador. The Quito edition was launched in 2001 and the Guayaquil edition in 2007. Metro Ecuador is the fourth most read daily newspaper in the country.[1]
Metro International will initially hold 15% equity interest in DIUNESA with an option to increase this shareholding in the future. Metro will account for its interest in the company as equity participation and will also receive franchise fees reflecting Metro International's operational support of the joint venture.
Quito, the capital city of Ecuador, has 2.2 million citizens. Guayaquil, the largest city in Ecuador, has 2.6 million citizens and is the nation's principal port and business centre. With newspapers in both cities, Metro will reach a national advertising market worth USD 913 million.[2]
Following the launch of the two Metro editions in Ecuador, Metro will become the largest newspaper in Latin America with over 500,000 daily copies distributed in six major cities in four countries: Mexico City, Monterrey, Sao Paulo, Santiago de Chile, Quito and Guayaquil.
Per Mikael Jensen, CEO Metro International commented: "Launching in new markets through franchise agreements with local partners has proven to be a very efficient way for Metro International to penetrate new markets and to quickly establish a strong market position. The launch in Ecuador is in line with our global strategy to expand in growth markets such as Latin America where we, in spite of the global economic downturn, are experiencing strong growth. Grupo Hoy has already built up a strong relationship with readers and clients for both Metro Hoy and Metro Quil. When combining this healthy starting point with the implementation of Metro International's global newspaper format, the prospects for the Metro joint venture in Ecuador become even more promising."
Jaime Mantilla Anderson, President and CEO of Edimpres S.A. said: "We are very pleased to have reached this agreement with Metro International as we believe that it will improve the market position of our existing newspapers as well as of our Group. The partnership with Metro International is in fact unique as it is the first foreign newspaper investment in our country."
[1] Source: Kantar Media Research (2009)
[2] Estimated gross advertising expenditure in 2009 (Source: Zenith Optimedia April 2009)
For further information please contact:
| Per Mikael Jensen, CEO and President | +44 (0)78 4167 3230 |
| Anders Kronborg, CFO | +44 (0)79 1254 0800 |
| Pablo Mazzei, Managing Director Latin America | +562 421 5901 |
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ABOUT METRO INTERNATIONAL AND METRO
Metro is the largest international newspaper in the world. Metro is published in over 100 major cities in 18 countries across Europe, North & South America and Asia. Metro has a unique global reach - attracting a young, active, well-educated Metropolitan audience of 17 million daily readers.
Metro International S.A. shares are listed on Nasdaq OMX Stockholm through Swedish Depository Receipts of series A and series B under the symbols MTROA and MTROB.