Swedish publisher of free newspapers may reach profit this year.

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• Newspaper group Metro swells in France

The Swedish publisher of free newspapers, Metro International, said on Monday it had narrowed its losses in the third quarter and voiced optimism that it would be in profit for the full year 2010.

Between July and September, Metro posted a net loss of 600,000 euros (800,000 dollars), compared to 7.5 million euros for the same period in 2009.

It posted net sales of 45.9 million euros for the quarter, up about 8.0 percent up from a year earlier, with especially strong sales in Sweden.

Other areas of growth were Russia, Mexico, Brazil, Canada and Chile.

"I am very excited to see markets returning to growth," company chief executive Per Mikael Jensen said in the earnings statement, adding he felt "great optimism that we will close 2010 on a positive note."

He added the group's strategy was to further expand in Latin America, Russia and Asia, as well as investing in online products and other brands.

The company aims to achieve an earnings before interest and taxes margin of 15 percent by 2012.

The company said the global advertising market, which suffered a severe downturn along with the worldwide economic crisis, had started gradually recovering at the end of 2009 and that the outlook for the ad market in 2010 was positive.

At midday Monday, Metro's shares were up 5.0 percent to about 1.26 krona on a Stockholm Stock Exchange up 0.3 percent.

Along with its quarterly results, Metro said Monday its Chilean subsidiary Publimetro has acquired the remaining 65 percent of SubTV, which broadcasts news and entertainment in the Santiago subway and train system.

Metro is published in 19 countries with some 17 million daily readers.