SPMG Sport Media

 
TIDMSPMG 
 
Sport Media Group plc 
 
                  ("Sport Media" or "the Company") 
 
                  Trading Update and Board Changes 
 
The Board  of Sport  Media Group  plc (AIM:  SPMG.L), the  integrated 
multi-media  group  that  publishes   the  Sunday  and  Daily   Sport 
newspapers, today announces the following trading statement and board 
changes, 
 
Following the recent successful completion of negotiations  regarding 
the financing of the  Group, the Board of  Sport Media is pleased  to 
report that there has been  an encouraging uplift in newspaper  sales 
in May, and we are currently achieving daily circulation levels  last 
seen in November 2008, averaging in excess of 75,000 copies a day  on 
weekdays.  The weekend titles are also seeing a small uplift, despite 
the recent increase in the  cover prices.. Advertising revenues  have 
been holding  steady,  but are  expected  to benefit  from  sustained 
increases in circulation over the longer term. The initiatives of our 
Honorary Publisher, David Sullivan, have made a positive impact,  and 
we are grateful for his continued oversight. 
 
The interactive business, which uses  the paper as a marketing  tool, 
had also been suffering from  the gradual decline in the  circulation 
numbers and  had responded  by reducing  its overheads.   The  recent 
circulation improvements have also already been seen to benefit  this 
business. 
 
Recent negotiations  with  our  printers have  led  to  significantly 
reduced printing costs which will have a materially beneficial impact 
on the profitability  for the Group  as a whole.   In the pursuit  of 
further efficiencies,  there have  been further  redundancies at  the 
Manchester headquarters  of  the  newspaper, which  are  expected  to 
generate annual  savings of  at least  GBP700,000, and  we continue  to 
pursue a number of other non-staff savings. 
 
The operational gearing in  the Group is now  working in its  favour, 
and the Board is optimistic for  the future prospects.  In the  short 
term the Group's primary  objective is to  generate cash and  thereby 
reduce  the  indebtedness,  which  currently  stands  at  c.   GBP12m. 
Accordingly the Company will not be resuming the payment of dividends 
until the debt has been reduced significantly, as we believe this  to 
be in the best long term interests of shareholders. 
 
The Company will report further  on trading performance and  progress 
when we announce our second interim results, which will cover the  12 
month period to 31 July 2009,  in the Autumn. 
 
Following  the  successful  refinancing   of  the  business  and   in 
recognition of the changing skills  required to lead the Group  David 
Bailey, non-Executive Chairman, has indicated his intention to retire 
from the Board later this year as and when a suitable replacement has 
been appointed. 
 
In addition,  as a  result of  a decision  to consolidate  the  Group 
accounting  functions  in  Manchester,   Andy  Fletcher,  the   Group 
Financial Director has also decided  to pursue new opportunities  and 
will leave the Board on 10 July 2009. We would like to thank him  for 
his hard work and dedication through some very difficult times in the 
past three and  a half  years, and  wish him  the best  of luck  with 
future projects. 
 
The Company is  looking to  strengthen the  Board over  the next  few 
months and further announcements will be made as required. 
 
For further information, please contact: 
 
Sport Media Group plc 
Andrew Fickling, Chief Executive Officer                    Tel: + 44 
(0) 161 236 4466 
Andrew Fletcher, Chief Financial Officer                    Tel: + 44 
(0) 20 8507 6965 
                                                                                     www.sportmediagroup.co.uk 
Daniel Stewart & Company plc 
Simon Leathers/Oliver Rigby 
     Tel: + 44 (0) 20 7776 6550 
 
    www.danielstewart.co.uk 
 
Notes to Editor: 
 
On the 5th September 2007  Interactive World Plc acquired the  entire 
issued share capital of Sport Newspapers Limited by way of a  reverse 
takeover. At this time the name of  the Company was changed to  Sport 
Media Group Plc and the enlarged issued share capital was admitted to 
trading on AIM. 
 
The  Group  has  grown  to  become  a  recognised UK branded  tabloid 
newspaper, publishing various  titles including the  Daily Sport  and 
Sunday Sport. The  Sport  titles  are sold  to  approximately  37,000 
retail outlets  around  the UK by  a  network  of  wholesalers,  both 
commercial and independent. 
 
The Group's  other  activities  include the  sales  of digital  media 
content  through  mobile  telephones  via  the  internet  to   mobile 
customers of  major UK  network  operators and  users of  leading  UK 
internet key search engines. 
 
=--END OF MESSAGE--- 
 
 
 
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement. 
 

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