The METRO business model is alive!

Published on February 04, 2010

The METRO business model is alive!

    Metro International, the world's largest publisher of free newspapers, known for inventing the Metro business model, has returned to a state of operating profit as of December 2009. My August and October fears were not confirmed.
    The situation improved only after Metro cut its operating expenses by 13%, selling its assets in the USA, Portugal, Italy and closing in Spain. I also had to move the headquarters from London to Stockholm. And although the last quarter of last year showed profit, the company remained at a loss throughout the year.
    It is interesting to note that the income from online assets grew by 78%, but is still small - it amounted to only 500,000 €. For reference: last year, 357,000 € was spent on the operation of Internet assets, plus another 444,000 € per team. In 2009, expenditures in this area were reduced by 14%, but they nevertheless came up at the end of the year with expenses of 4.67 million €.
    Nevertheless, the company is not discouraged, because its daily audience is 17 million readers. Metro's special hopes and plans are associated with Russia and Brazil.