SMG reports pre-tax loss of over £29 million

Sport Media Group has reported a pre-tax loss of more than £29 million for the 17 months to the end of December 2009.

The Daily Sport and Sunday Sport publisher has confirmed that the Royal Bank of Scotland will extend its debt facilities  to the group for an additional three years, to help its restructuring programme.

The group is still in substantial debt, with debt-servicing creating a major cost.  Total net debt for the 17-month period was up to £11.9 million, up from £10.43 million at the end of July 2008.

However, Martin Robinson, SMG’s chairman, said the business is “stable and profitable”, despite admitting that its “outlook remains difficult”.

“We are optimistic that, through supportive debt holders, dedicated staff and interested shareholders, we can look forward to a positive future,” he added.

An amortisation and impairment of goodwill charge of £23.8 million contributed to the group’s total loss.

SMG said that its underlying loss before tax and amortisation was £400,000, compared with £6.4 million in the year to the end of July 2008.

Advertising revenues, meanwhile, were down 14% year on year between January and March.  The group’s total ad revenues for the full 17 month period were £10.7 million.

The Daily Sport saw its circulation dip to 73,700 copies in the period from January to Easter this year, while the Sunday Sport was down to 66,400 copies.