Ad-free
state TV
Metro offloads
for Spain
US business
Free newspaper group sells its loss-making American publications
US Metro International has agreed forward to further developing Metro
to sell off its entire operation in the in the United States. In the current
United States after its ad revenues hit economic situation advertisers are
the rails. looking to brands such as Metro that
The sale to Seabay Media Holdings, represent a strong offering through
due to be completed by June 1, covers better value and reach. At the same
the publication of free dailies in New time we recognise the challenges
SPAIN The Spanish government York and Philadelphia as well as a ahead but we will give them our
has decided to make state tele- joint publication with the Boston full attention. We look forward to
vision free from all advertising, Globe. Metro said in a statement the starting the hard, daily work with the
and instead tax private TV com- three newspapers had a combined staff of the newspapers necessary to
panies to compensate for the circulation of 590,000 copies per day ensuring Metro’s success.”
loss of revenue. and reached about 1.2 million readers. Per Mikael Jensen, president and
The plan has already boosted It said it would book a loss of about $2 chief executive officer of Metro
shares in private TV companies, million on the deal. International, adds, “Metro USA will
such as Telecinco and Antena 3, “Under the terms of the agreement, continue as a licensed operation to
as investors hope it will result in Seabay Media will continue to publish Metro International under strong
increased revenue due to lower Metro in all three markets under a leadership from one of the experts in
competition for advertising. service and license agreement with in Stockholm in 1995. It now has the business. After a rough 2007, we
Spanish state TV channels La Metro International,” the companies more than 81 editions in 22 countries, have seen many improvements and
Primera and La Dos currently have announced. including those in the US. losses have decreased significantly.
spend around 1.1 billion euros The Metro daily, which is financed Pelle Törnberg, founder and chief I’m confident however that Metro
($1.49 billion) per year, half of entirely by advertising and handed out executive officer of Seabay Media, USA will reach profitability and
which comes from advertising for free to commuters, was launched says, “We are excited and look steady growth.”
revenue with the rest made up of
government subsidies. In order
to compensate for the loss of
income once state TV goes ad-
Digital ad offerings from M&C Saatchi
free, private TV companies will INDIA M&C Saatchi has officially launched its direct and
be hit with a tax on their revenues digital communications division in India, called M&C
of 3 per cent while telecom Saatchi-i, which will be headquartered in Mumbai with an
companies, such as Telefonica, additional office in New Delhi.
face a lower rate of 0.9 per cent. Sumantra Sengupta heads the agency, which already has
No details were provided as a client list including Asia Pacific Breweries, Worldwide
to when advertising would be Media, Kotak, Turner and Castrol. The formal launch of the
removed from La Primera and Indian unit coincides with an identical launch from M&C
La Dos but local media reports Saatchi’s China office. Chris Jaques, M&C Saatchi chief
have suggested that this will take executive officer for Asia, says both India and China are
place on September 1. the fastest-growing geographies in the world, with digital
being the fastest-growing sector in the industry.
M&C Saatchi co-founder Charles Saatchi
BAA move puts JCDecaux in departure lounge
UK BAA will call an outdoor advertising A tender for the new contract is
pitch for its airports after an existing expected to be issued by BAA later this
contract with JCDecaux was terminated. year, following the sale of Gatwick,
According to JCDecaux Airport, the Glasgow, Edinburgh and possibly
decision was jointly agreed. The three- Standsted airports. The remaining BAA
year relationship spanned seven UK airports will include Heathrow, Aberdeen
airports but ended after the Competition and Southampton, as well as Heathrow
Commission ruled BAA must sell some of Express rail service.
its airports. It is unclear whether JCDecaux Airport
Under the existing contract, JCDecaux will repitch for the account. JCDecaux has
Airport will continue to handle the ad just reported its first ever revenue slump
space account for all seven airports under with an 11.9 per cent drop in earnings to
its remit until 2010. £373.6 million.
17 MAY 2009 / 09
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