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FOR IMMEDIATE RELEASE 8 August 2001 METRO INTERNATIONAL S.A. PRELIMINARY RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE 2001 Luxembourg, 8 August 2001 – Metro International S.A. (“Metro”) (MTROA, MTROB), today announced its preliminary results for the six months ended 30 June 2001. · Year to date Group net sales up 42% on local currency basis - international editions up 115% and Sweden up 7% · Total daily readership up 116% to 8.5 million year on year and average number of daily readers per copy up to 2.53 · Year to date cost per copy down 5% and cost per reader down 23% · All editions launched more than 2 years ago now profitable and 7 editions launched before 2000 contributed EBITDA of US$ 4.0 million in the year to date · Stockholm operating margin maintained at 40% in the first half year · Three new editions launched in year to date · National advertising coverage in 5 out of 14 markets Consolidated income statement Q2 2001 Q2 2000* H1 2001 H1 2000* (US$ ‘000s) Net Sales 28,633 24,560 56,171 44,301 Gross income (loss) (853) 9,455 (5,810) (15,405) Earnings (loss) before (17,969) (6,454) (37,329) (15,761) depreciation and amortisation Operating income (loss) (19,297) (7,875) (39,943) (18,377) Income (loss) after financial (15,783) (10,096) (37,078) (21,532) items & before income tax Earnings (loss) per share (0.22) (0.18) (0.51) (0.37) Number of shares outstanding 76,088,489 66,375,156 76,088,489 66,375,156 * Restated to include allocation of franchise fees to operations 1 OPERATING REVIEW Metro delivered net sales growth (on a local currency basis) of 31% in the second quarter and 42% in the first half of 2001, despite weakening global advertising markets. Year to date net sales for the international editions increased by 115% in the year to date (on a local currency basis), whilst sales in Sweden increased by 7% in the same period. International sales exceeded Swedish sales for the first time in the second quarter. Metro, the world’s fastest growing newspaper, now has nearly 8.5 million daily readers and is the fifth most read newspaper globally. This represents an increase of 32% since the last survey in November 2000 and a 116% increase since the first survey in May 2000. The average daily circulation has increased by 113% since May 2000, with the result that the number of readers per copy has increased year on year by 5% and now stands at 2.5. The proportion of daily readers under the age of 30 and of female readers has remained at approximately 40% and 50% respectively. These results have been achieved despite the fact that the number of Metro editions and the average daily circulation have doubled since May 2000, and that the May 2001 survey figures include the Boston edition, which was only launched in May 2001. In addition to the improvement in the reach of Metro and the fact that demographic profile of the readers has remained similar to that of a TV broadcaster, the cost of achieving this reach and profile has fallen. The average cost per copy has decreased year on year in the first half of 2001 by 5%, in line with management’s stated intention to reduce the total cost of production per copy by 10% this year, whilst the cost per reader has decreased by 23% in the year to date. This efficiency reflects the savings achieved through the renegotiation and consolidation of paper and printing agreements in eight operations to date and the ongoing exploitation of economies of scale achieved through initiatives such as Metro World News, the Group’s internal news wire that aggregates content across Metro’s 19 editions. The full effect of these savings is expected to impact on group earnings over the next 6 to 12 months and the focus on cost efficiency continues in all operations. The Swedish operations showed an increase of 7% in net sales in local currencies during the first half of 2001, but a decline of 1% in the second quarter as the Swedish advertising markets weakened further. The Swedish newspaper advertising market was down year on year by 1.3% in the first quarter, 9% in April and 18% in May, according to the official research from Institutet för reklam och mediestatistik (IRM). Metro was therefore able to significantly increase its market share. Similarly, in Holland, the overall print advertising market was down year on year by 4% in the first quarter and by 11% in the second quarter, according to the official research from Bureau Budget Control (BBC). Despite these weaker market conditions, the Dutch operation reported a sales growth of 30% in local currencies in the year to date and a 9% growth in the second quarter. Both the Prague and Budapest operations showed profits for the second quarter and the year to date, with the seven editions launched before 2000 reporting combined earnings before and after depreciation and amortization of US$2.1 million and US$1.1 million in the second quarter and US$4.0 million and US$1.9 million in the year to date respectively. All of the Metro editions launched more than two years ago are now profitable, and only US$5.6 million of the total year to date Group losses of US$39.9 were generated by the editions started before the end of the first half of 2000. 2 Three new editions have been launched in the first half of 2001, compared to five editions during the same period last year. These included the first French language edition, in Montreal, and the first dual language (Spanish and Catalan) edition, in Barcelona. The business development team continues to evaluate a number of potential new markets. As Metro’s footprint has spread, it has been possible to reduce the cost of licence hunting by using existing Metro operations to provide the platform for regional business development. The second US edition was launched in the second quarter in Boston, one of the major cities and largest media markets in the US. The newspaper is already the second largest in the Boston area. The new launches so far in 2001 have further demonstrated Metro’s distribution mix. The Montreal edition is distributed in the municipal transport system as well as in the City center, whilst the Barcelona and Boston editions are distributed by hand and from racks in the City center. Following the increase in circulation of Metropol in Hungary to cover all of the major cities in Hungary, Metro now has access to the national advertising markets in five out of its fourteen markets. The new agreement for the distribution of Metro through the transportation system in Warsaw has also strengthened the newspaper’s position in the largest media markets in the central European region. Metro Today, the joint venture with Torstar in Toronto, was launched after the end of the second quarter and is already the second largest newspaper in the Greater Toronto area. Not only does this arrangement make the combined entity the clear free newspaper market leader, but it also efficiently combines the strengths of the two partner organizations. Metro has further strengthened the senior operational management with the appointment of a new Managing Director for the Nordic operations and a new Managing Director with responsibility for global distribution. Metro continues to grow strongly and move its more mature operations into profit. The current weakness due to the downturn in the advertising markets has enabled Metro editions to increase their market shares, whilst the tight cost control across the Group ensures high levels of incremental profitability. Nordic Gallup Worldwide Readership: Readership: Circulation: Circulation: Readership Survey May 2001 May 2000 May 2001 May 2000 (‘000s) ‘Metro’ Sweden 1,003 937 397 408 ‘Metro’ Helsinki 160 184 109 102 Total 1,163 1,121 506 510 The latest Gallup survey has further reinforced Metro’s position as the most read morning newspaper in Sweden. Excluding the first quarter sales for the Stockholm evening newspaper Everyday, net sales in Sweden increased by 7% in the first half of 2001. 3 Metro is the most read morning newspaper in Sweden and all of the Swedish operations performed considerably better than the newspaper advertising market, which had already declined by 7% in the year to the end of May 2001, according to IRM. The operations therefore increased their market shares significantly. Earnings are impacted by the ongoing amortization of goodwill, relating to the buying out of minority shareholders, which amounted to US$ 0.8 million for the second quarter and US$ 1.7 million for the first half. Earnings before depreciation and amortization, excluding Everyday, amounted to US$9.2 million in the first half year and to US$3.9 million in the second quarter. The operating margin in the mature Stockholm operation was maintained at 40% in the year to date. The Gothenburg edition continued to show a quarterly profit, while the operating losses in Malmo were reduced significantly. Helsinki reported a 64% increase in net sales in the first half of 2001 on a local currency basis and a 12% increase in the second quarter. Metro is the largest free daily newspaper in Finland and reported a 9% reduction in operating losses in the second quarter. Rest of Europe Gallup Worldwide Readership: Readership: Circulation: Circulation: Readership Survey (000’s) May 2001 May 2000 May 2001 May 2000 ‘Metro’ Prague 249 320 180 200 ‘Metro’ Hungary 895 491 338 220 ‘Metro’ Netherlands 951 1,059 290 273 ‘Metropol’ Switzerland 427 215 280 117 ‘Metro’ Italy 1,202 - 435 - ‘Metropol’ Warsaw 260 - 187 - ‘Metrorama’ Athens 162 - 108 - ‘Metrodirecto’ Barcelona 397 - 175 - Total 4,543 2,085 1,993 810 The Dutch operation reported sales increases of 30% and 9% in local currencies in the first half and second quarter respectively, despite the fact that the overall Dutch print advertising market was down by 10%.