Laying down arms
Metropol, Poland's second-largest free daily, has closed its doors. Neither a reputation as a trusted and innovative daily, nor a readership of 1.33 million in 2006, kept Metropol's publisher, TPP, from folding. Metro International, which owned the publisher in full, experienced a loss of $3.7 (zł.11.1) million last year, leading to the demise of its subsidiary. The parent company now wants to focus on larger scale strategic markets.
"It was not our readership position that hindered advertising revenue," Francois Barou, Metro International's director of corporate development and company secretary, told WBJ. "In Spain, where we do not have the top position, we are the only free daily to make a profit."
Metro International publishes free dailies in 100 major cities worldwide. Advertising sales have grown at an annual rate of 44 percent since its first issue in 1995. "It is discipline as a core value that we owe our success to," declares Barou. Metro International has also closed subsidiaries in Argentina, Switzerland, and Newcastle, England. Metropol debuted in 2000 in Warsaw and expanded to nine of Poland's biggest cities.
Meanwhile, Metropol's biggest competitor, Agora-owned Metro, has noted a record average daily readership of 5.3 percent, giving the paper third place overall among Polish dailies. "Improved layout and intense promotion add up to the paper's credibility among advertisers," declared Joanna Parczyńska, director of Agora's free press department. "Metropol's closure will not influence our strategy in any way."
"Agora wants to invest in Metro to strengthen its existing position," added Zbigniew Bšk, Deputy Chairman of Agora.
