Well, I don't see any problems doing so, you can have the company incorporated in Cyprus even if it is doing business with some adult related stuff.
Just keep it to comply with the laws in Cyprus, some types of Adult won't for instant not be accepted, I'm not going to outline it here since it would belong to a dult forum and not this forum.
if you are interested in adult entertainment for earning purpose then you can move forward. most of the revenue that is earned on internet is from adult content. but you just mind you that where you are going to establish it. in some places like India adult is restricted.
