Publishing Losses Narrow at Martha Stewart
Martha Stewart Living app to hit the iPad next month.
Amid reports about a reorganization among its heads of marketing, broadcast sales and digital sales, Martha Stewart Living Omnimedia Wednesday reported a net loss of $13.7 million through the first nine months, compared to a loss of $35.3 million this time last year. The company’s revenues were $49.7 million in revenue during the third quarter this year and $158.2 million year-to-date—up slightly from $157.2 million during the same period last year.
MSLO’s publishing division reported an operating loss of $400,000 during the third quarter versus a loss of $2.5 million during the same period last year. Revenues grew slightly to $30 million versus $27.1 million during the third quarter 2009. The company attributes the sales spike to the timing of the fall issue of Martha Stewart Weddings, which was reported during the third quarter this year compared to the fourth quarter last year. Ad revenue at Martha Stewart Living was up 9 percent during the third quarter.
Year-to-date, publishing division revenues have stayed flat at about $88.8 million. MSLO says it plans to unveil its first digital magazine app for the iPad—a special issue of Martha Stewart Living—by mid-November.
During the third quarter, the only division that did not report an operating loss was merchandising, which generated roughly $5.5 million in profit, up more than 50 percent from $3.5 million during last year’s period. According to MSLO executive chairman and principal executive officer Charles Koppelman, the company is now realizing positive results from its merchandising unit after efforts over the last several years to diversify and expand that business “for long-term growth.”
Meanwhile, broadcasting reported an operating loss of $4.1 million during the third quarter (revenues fell more than 47 percent to $5.8 million) and the Internet division realized an operating loss of $700,000 (although revenues spiked more than 50 percent to $4.3 million).