In an earnings call yesterday, Reader’s Digest Association blamed its quarterly loss on Rachael Ray—specifically, her magazine Every Day With Rachael Ray.
The company said that it lost $16.6 million in the third quarter before interest, depreciation and amortization—a $6 million increase from the same period year ago, when RDA reported a $10.6 million loss. However, the company’s net loss, which includes one-time charges, declined to $76.8 million from $86.8 million.
Revenue was also slightly down, dropping 4.7 percent to $346.7 million, compared to $363.7 million a year earlier.
The company said that much of the loss had to do with Every Day with Rachael Ray, which was sold to Meredith last month. According to RDA, Every Day lost $5.6 million in the quarter.
RDA also said in its earnings call that it had put its Weekly Reader franchise up for auction.