Metro, which publishes free newspapers in over 100 cities across the globe, failed to capitalise on its $13m net profit made in 2006 and endured a basic loss per share of $0.05 in 2007.
Operating loss was $20.7m in the 12 months to December 31 2007, which is in stark contrast to the $17m operating profit made in 2006.
The company said the negative results in 2007 were due to heavy losses in Spain and the US, a $10.2m provision for Swedish advertising taxes, restructuring costs of $5.1m due to the departure of senior executives and a $5.2m investment in online activities.
Per Mikael Jensen, chief executive officer of Metro International, said: "Metro International has not been immune from the volatility affecting the global newspaper industry, which has been reflected in the latest results of the company.
"While the loss for the full year 2007 is a disappointment, the board, management and employees of Metro International remain committed to reversing losses in markets that are underperforming and to focus investment in areas of strong potential growth, including online.
"Nevertheless, I am encouraged by the current underlying performance of the company in many markets, while there is a clear need for further action to deliver sustained profitability."
The publishing company achieved a net profit of $5.1m in the fourth quarter of 2007, which was impacted by changes in Sweden's advertising tax rate, which are being appealed by Metro.
In real terms, allowing for the depreciation of the US dollar, net sales growth, excluding Bostad, Poland and a divested operation in Finland, was 5.0% year on year during the fourth quarter.
France and Italy delivered strong profits in the final quarter, based on strong sales and cost savings. Portugal delivered more than 30% sales growth.
However, the company is concerned with its operations in Spain and the US, which posted disappointing results in the fourth quarter. Metro has begun cost reductions in the US, involving 27 redundancies across three cities to minimise the impact of revenue declines.
The company said it will continue its commitment to developing its online business with websites in France, Spain and the Netherlands.
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