Free newspaper Metro expects a double digit decline in advertising revenues this quarter but is confident it is well-positioned to survive the recession.
The Associated Newspapers-owned publication is celebrating its 10th anniversary this year and managing director free newspapers Steve Auckland (pictured) acknowledged the tough economic climate at a press conference today (5 March).
He said: “Last year we knew this was going to be a difficult year. It might get worse but we think we have got the cost base down well enough to ensure we have a good survival plan in place.
Metro recorded single digit decline in ad revenues for its first financial quarter running October to December. However, it has added new clients such as Lurpak to its advertising.
Addressing the issue of the morning distribution contract with London Underground, which is up for renewal next year, Auckland said that the partnership “is desirable but not essential.”
He added: “We will not endanger the business by overbidding” and that street merchandisers could handle the distribution of the tile if necessary.
He also states that the Metro brand continue to serve the growing audience in the digital space, from mobile to user-generated content, but investment “will be managed in line with revenues.”