Agora deputy CEO Mr. B1k [bonk] said that the company keeps unchanged its development plans relating to free sheet newspaper segment, following a withdrawal from Poland of Swedish Metro a few days ago, reiterating that its free publication project would break-even only in 2008, despite very promising growth in circulation (over 60% y/y in 2006) and becoming the third newspaper in terms of readership reach, after ‘Fakt’ and ‘Gazeta Wyborcza’.
Our view: We view the news on Agora not changing its marketing policy, after rival withdrawal, as slightly disappointing, as we were counting on increase in ‘Metro’ ads prices, and faster break-even of the project. Instead, Agora seems to have chosen to continue boosting the readership reach of its title. We reiterate our Hold rating for the stock.