Metro overturns $14.6m losses to record first-half profit

LONDON - Metro International has reported a 11% year-on-year increase in sales increase for the first half of 2006, as it returns to profit after last year's first-half loss.

The company, which has reportedly put its name forward for Network Rail's forthcoming London evening newspaper tender, recorded an 11% year-on-year net sales increase to $205.3m (拢111.5m). Pre-tax profits returned to the black at $400,000 after last year's $14.6m first-half loss.

Pelle Tornberg, president and CEO of Metro International, said: "We will continue to make new investments, but in a balanced manner with a focus on profitability. Reported year-on-year sales growth for the quarter was negatively impacted by the Easter holidays, which fell into the first quarter last year.

"The World Cup also had an adverse effect on June and July's sales for the group, with some of Metro's advertisers holding back their advertising spend."

The company added that it planned to start new Metro franchises in Mexico and Croatia in the next quarter, following the launch of Spanish and Czech editions in the first quarter.

The total operating profit figure of $2.6m excludes the $15.9m net profit from the 49% sale of Metro Boston.

Metro International launched 17 new editions in 2005, including ones in Russia, Portugal and Ireland.

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