Metro franchise to launch in Brazil
On May 7, Metro will launch an edition in Sao Paulo, Brazil, the fifth largest city in the world. Metro International will have a 29.99% stake in the operation which will launch as franchise. Major shareholder is Grupo Bandeirantes, owner of several radio and TV stations in Brazil. The new publication, which will be called Publimetro like in Mexico and Chile will have a circulation of 150,000. The franchise launch is in line with the new Metro strategy which focuses on minority shares and franchises instead of on full launches which could harm the new overall profitability of Metro International. Also, in Brazil, foreign media ownership of 30% or more is not allowed.
Total Brazilian paid circulation was 6.7 million in 2005 while World Press Trends reports that at least eight papers in Brazil have a higher circulation than 150,000 – most of them are published in tabloid. In Sao Paulo also two other free dailies are published: MetrôNews, already launched in 1974 (circulation 120,000) and Destak (launched July 2006), a sister paper of the Destak paper in Portugal, with a circulation of 200,000. In 2000 Metro already established a branch in Brazil and planned a edition of 200,000 copies but this operation never saw the streets. Some months ago rumors circulated that Metro was talking to a commercial broadcaster but Metro declined to comment on these plans.
Source: Metro International press release