Metro International S.A. ("Metro"), the international newspaper group, today announced that it has entered into a franchise agreement in Peru with El Comercio ("ECO"), the leading media group in Peru. A new edition of Metro will be launched under the brand name "Publimetro" on 30 June in the capital city, Lima.
Metro will receive franchise fees reflecting the value of the services provided. ECO will hold the control of the local operation. Metro Peru will benefit from synergies with ECO and their expertise of the Peruvian media market.
Peru is 7th largest advertising market in Latin America, estimated by Ibope to be worth US$ 541 million. A third of Peru's 30 million inhabitants live in Lima, making it the 5th largest city in Latin America. Publimetro will have an initial distribution of 95,000 daily copies from Monday to Friday, which will be hand delivered by distributors at strategic locations to reach the target audience of young affluent Metropolitans.
Per Mikael Jensen, President and CEO of Metro International commented: "Metro continues its expansion in Latin America in line with the strategy for growth in emerging markets. With the addition of Peru, Metro is present in 6 countries in the region, offering interesting synergies to the business. Launching in new markets through franchise agreements with strong local partners has proven to be an efficient way for Metro to quickly establish a strong market position in new markets. We are impressed by the expertise of ECO and look forward to a successful cooperation with them."