Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

Venture into the adult world!

Last week, I visited Sport Media Group (SPMG: AIM), formerly known as Interactive World, who have recently completed the purchase of the Sport Newspaper from David Sullivan, he of Birmingham City fame and other more ‘glamorous’ businesses. Sport Media are also involved in ‘adult’ texting, a high demand business, apparently!

The Sport Newspaper was famous (or infamous, depending on your point of view) for its outrageous news stories such as World War II Bomber found on the moon and for its ‘glamour’. Circulation had dropped from its 1990s highs and really deteriorated into a sales vehicle for many of Mr. Sullivan’s other business.

However, the new management intend to turn fortunes around and hope to get back to the humour and glamour that made it a popular read in the ‘greasy spoon’ café.

Everything from content to distribution to advertising is being overhauled.

The front cover is to be less offensive so retailers will not baulk at displaying in the newsagents. Content is now being overseen by James Brown founder of Viz and former editor of Loaded magazine. Much of the ‘adult’ advertising is now being pushed to the back of the paper to make space for the mainstream advertisers and new state of the art software will give the company pinpoint accuracy to where the paper is selling out, not selling etc.

The Sport is never going to out sell the Sun or the Mirror but it should be able to increase circulation and attract mainstream advertising as it is bought by the demographic that the major corporates crave, male 20-40 years old. Year end results are expected to hold no surprises when they are announced next week and the beauty is that the ability to deliver can easily be monitored by buying the newspaper….just wear a disguise in case someone sees you!!!!!

 

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