Metro International S.A. ("Metro" or "the Group"), the international newspaper group, today announced that Metro will receive higher contribution to EBIT from its operation in Canada ("Metro Canada") in 2011. This is triggered by a clause in the shareholder's agreement stating that royalties shall be paid to Metro when Metro Canada has recovered the losses from the initial period of publication. Losses will be recovered in the end of 2010.
Metro Canada has grown steadily since the first edition was launched in Toronto in 2000. The Montreal edition, launched in collaboration with Transcontinental, followed in 2001. In 2001, Metro also partnered with Torstar, one of the largest media companies in Canada, to continue the national expansion in English speaking Canada. Metro has become the most read newspaper in Canada reaching 1.4 million daily readers (source: NADbank 2009/10).
The contribution to Metro's EBIT from Metro Canada is expected to be approximately €1.5 million in 2010. The contribution in 2010 would have been approximately €4.0 million, had Metro Canada's result been treated as it will be treated in 2011.
Anders Kronborg, CFO of Metro International and EVP Metro Canada said: "Metro Canada has been growing steadily over the years and has built a strong multi-platform brand in the market. Metro Canada is now the same size as the operation in Sweden, both in terms of sales and profitability. We are very pleased that the value of Metro Canada will be better reflected in Metro's books".
For further information please contact:
Anders Kronborg, CFO and EVP Canada Tel: +44 (0)79 12 540 800
Linda Fors, Head of Investor Relations Tel: +46 (0)70 715 95 30
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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 19 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.
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Source: Metro International via Thomson Reuters ONE
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