Metro International SA ("Metro International"), the international
newspaper group, today announced that it has entered into a franchise
agreement with Gazeta Metro in Moscow.
Metro International has formed a joint venture with ESN Group and
this joint venture has acquired a stake in Gazeta Metro, the most
read free newspaper in Moscow.
ESN Group is a Russian investment company, investing in and managing
assets in the energy, engineering, real estate, transportation and
media sectors.
Gazeta Metro was started in 1997 as a partnership between Sistema
Group, the Moscow city government and Moscow Metropolitan (the Moscow
subway owner and operator). Gazeta Metro is distributed in the Moscow
subway and with 400,000 daily readers is the third most read
newspaper in the city.[1]
Metro International has, through its new joint venture with ESN
Group, an effective equity interest of 0.81% in Gazeta Metro. Gazeta
Metro's other shareholders include the founding shareholders Moscow
Metropolitan and the Moscow city government.
Metro International holds an option to acquire additional shares in
Gazeta Metro. ESN Group, through a coupled option, has the right to
acquire an equity stake in Metro St. Petersburg, a Metro
International franchisee since 2005.
Metro International will receive a franchise fee from January 2009,
reflecting Metro International's engagement in the running and
development of Gazeta Metro.
With Metro International's support Gazeta Metro will be re-launched
and rebranded in 2009 to make it consistent with the strong brand
that Metro International has developed globally. Metro International
will work closely with Gazeta Metro to ensure that the Metro
International Group's know-how is fully implemented at Gazeta Metro.
Synergies between Gazeta Metro and Metro St. Petersburg exist and
these will be exploited. These synergies include content sharing and
advertising sales packages. Together Metro Moscow and Metro St.
Petersburg have the highest readership of any newspaper in Russia's
largest two cities.
Moscow is Russia's leading economic centre by a sizeable margin and
with its population of 13.5 million inhabitants is one of the largest
cities in the world. Zenith Optimedia estimates that Russia's gross
newspaper advertising market grew 19.1 % year on year in 2007 to US$
11 billion.
Per Mikael Jensen, Metro International's President and CEO commented:
"The very pleasing development of Metro in St. Petersburg over the
last three and a half years has made us receptive towards expanding
further in Russia. We have for many years kept a watchful eye on the
media sector in Moscow, waiting for the right opportunity. With ESN
Group as our partner as well as subway distribution rights we hope
over time to establish Metro in Moscow as a leading print medium. The
Moscow advertising market is much larger than that of St. Petersburg
and therefore this joint venture has significant promise."
[1] Source: TNS Gallup
For further information please contact:
Per Mikael Jensen, CEO and tel: +44 (0)20 7016
President 1300
Robert Patterson, EVP tel: +44 (0)20 7016
1300
***
ABOUT METRO INTERNATIONAL AND METRO
Metro is the largest international newspaper in the world. Metro is
published in over 150 major cities in 20 countries across Europe,
North & South America and Asia. Metro has a unique global reach -
attracting a young, active, well-educated Metropolitan audience of
over 20 million daily readers. Metro's advertising sales have grown
at a compound annual rate of 38% since the launch of the first
edition in 1995.
Metro International 'A' and 'B' shares are listed on the OMX Nordic
Exchange's Nordic List under the symbols MTRO SBD A and MTRO SBD B.
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
http://hugin.info/132142/R/1278642/285302.pdf
Copyright © Hugin AS 2008. All rights reserved.
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