Summary:

Daily Sport publisher Sport Media Group, which also operates several of websites and mobile adult content offerings but yesterday admitted b…

Daily Sport publisher Sport Media Group, which also operates several of websites and mobile adult content offerings but yesterday admitted breaching its bank loan covenants, promised a number of projects are underway to monetise SundaySport.com, as it seeks urgent new funding by March 6.

The group scored seven percent better pre-tax profits of £6 million in the year to July 31 on percent better turnover of £29.4 million – but is taking impairment charges of £18.4 million on the acquisition of Sport Newspapers by mobile adult publisher Interactive World (the 2007 deal that formed the group) and of £2.3 million on its software and licenses plus photo and film rights, so the group settles on an overall £18.2 million loss for the year, more than tripling from last year.

Online may be one revenue generator: SMG “soft-launched” SundaySport.com in November and, though it admits the site is in its infancy, now plans initiatives such as SMS marketing and “lock-and-pay” adult DVDs – films that are bundled free in newspapers but which have scenes unlockable only through online payments. Netcollex, the trading name of the Interactive World company that bought the Sport in 2007, also has a range of mobile adult sites and also produces a host of mobile products including ring tones, wallpapers, screensavers, Java based games, as well as gambling games and horoscopes.

Covenant breach: A statement from the company

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