Jensen expects profits for Metro in 2010
The Swedish media website Resume reported on the interview Metro International CEO Per Mikael Jensen did after the presentations of the Q1 2010 results. Although Jensen did not want to make predictions he also said that a SEK 50 million (€5m) profit for the company “would not be unrealistic”.
He also said that the Greek edition is going to be closed down or sold before the end of 2010 if results do not improve. A closure would mean the disappearance of Metro from the South of Europe. Earlier Spain and Croatia were closed down while the Italian and Portuguese editions were sold.
Jensen was very pleased with the results for Canada, Brazil, Hong Kong and Sweden. Also the Russian editions were profitable in Q1. In Russia there are plans for expansion.
The editions for Denmark and the Netherlands, however, “must do better” in Q2 2010 according to the CEO.
The digital operations still lose money: SEK 20m (€2m) on a full year basis, although the company is launching a new online strategy with Sweden and Denmark already showing a small profit.
More advertising revenues and cost cuts were responsible for the improved results for 2010 Q1. Metro expects a 5% rise in advertising revenue in 2010 compared to the previous year. Costs were cut by selling unprofitable operations and reducing the workforce with 200 people.