Once again Metro International has turned in poor financial figures. In announcing its second quarter results today, the company that publishes freesheets across the world reported sales down by 4.1%, from €80.6m (£64.1m) to €77.3m (£61.4m), operating profit down from €3.6m (£2.9m) to €0.6m (£0.49m). Metro International's overall net loss of was €1.9m (£1.5m). Naturally enough, its first half results also reveal a depressing picture.
MI (which does not publish the British Metro titles that turn a profit for their owner, Associated Newspapers) has been taking on new partners in recent months. Schibsted, the Norwegian media conglomerate, is taking a 35% percent stake in MI's Swedish subsidiary, subject to regulatory approval, while the Danish group, JP/Politiken, has acquired 24.5 % of metroXpress in Denmark. In Mexico, MI has increased its holding in a joint venture.
Per Mikael Jensen, MI's ceo and president, says the three deals are in line with the company's strategy to consolidate its markets. He argues that the company has achieved "a commendable result in difficult market conditions" in which "a few operations" - notably, the US, Spain, Denark and Canada - have dragged down the group's results down.
With MI under pressure in north America and Europe, it is aiming to grow in Asia, South America and Russia. It is also launching websites, with a French one opening in March and a Spanish one last month.
These results confirm the difficulties of making money from giving away papers for nothing, especially in a declining advertising market. Though the online push makes sense in some ways, it does rather undermine the practice of handing out newsprint. I know some companies, like Associated, have made the model work. But the "free revolution" is surely only a transition stage between paid-for newsprint and the internet.
