Owners "disappointed" with reaction to Daily Sport relaunch

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New editor at Sport titles after relaunch misfires

9:52 am, June 6, 2008
Owners "disappointed" with reaction to Daily Sport relaunch

Sport Media Group, the AIM-listed publisher of the Sunday and Daily Sport newspapers, said that pre-tax profit will miss expectations after sales of its newly re-launched Daily Sport newspaper fell by 11 per cent in May.

It also announced the acquisition of magazine publisher Flip Media for £265,000.

In a statement to the stock exchange, Sport Media (AIM:SPMG) said sales of the Daily Sport are averaging about 85,000, according to the latest Audit Bureau of Circulation (ABC) figures. The company said that while profit will be below expectations for the year to the end of July, it will exceed £6m.

Chief executive Andrew Fickling said: “Whilst the board is naturally disappointed with the initial reaction to the re-launched daily title, I am pleased to note that performance over the most recent weeks indicates a growing acceptance of the new format. This compliments the feedback we have had from potential advertisers, readers and retailers. The paper will continue to evolve as we re-introduce it to our existing audience and strike the right balance to appeal to more new readers.”

Sport Media also announced a strategic review of the business in response to the declining share price and said that once this is complete, chairman Simon Hume-Kendall will step down. He will remain on the board as a non-executive director. The stock is down 68 per cent in the past 12 months.

Flip’s flagship monthly title is a lads’ magazine called Front, which according to Sport Media has a growing circulation of more than 40,000. It is sold throughout the UK as well as overseas. The other titles owned by Flip make a small contribution to profits, and will be reviewed once the acquisition is completed, it said.

“The outlook for 2008/9 remains positive, when the benefit of a full year's trading from the Sport, significant cost reductions already implemented, and enhanced cross-selling opportunities between the interactive business, the newspaper and the newly acquired magazine titles, will be fully realised for the first time,” the company said.

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