Sport Media Group issued a bullish trading update yesterday, saying that profitability and cash generation is currently running ahead of its revised budgets.
The publisher said that advertising levels were stable and that cost savings had been achieved after striking a new print contract in May that had reduced production costs.
Last month, the publisher said that sales of its titles were soaring in the last three months.
The SMG board said yesterday: ‘the recovery in circulation of the newspaper titles has been very encouraging.
“In recent weeks we have achieved average daily sales, Monday-Friday, of approaching 85,000 copies, which is 18 per cent higher than the nadir in March, and more than six per cent up year-on-year.”
The company, which dropped out of official ABC audit system earlier this year, said involvement of our Honorary Publisher, David Sullivan, had contributed to the uplift since he returned in April.
‘Saturday circulations have also improved significantly, with most recent Saturday sales of just over 55,000, from a low of c. 45,000. Average Sunday Sport figures have also increased over the same period by 7.5 per cent to c. 76,500 (four-week averages).”
The positive outlook comes after months of uncertainty and trouble at Sport Media Group in also withdraw its interest in the consumer magazine sector selling mens title, Front, yesterday to independent publisher Kane for £87,500.