Martha Stewart Living Reports Narrowed Operating Loss

Martha Stewart Living Omnimedia (MSO) today announced a second-quarter operating loss of $803,000, an improvement over the $6.1 million loss it sustained in the second quarter of 2009. Second-quarter 2009 results included an impairment charge of $5.5 million related to the company’s merchandising business.
Overall revenue fell to $55.3 million from $57 million a year ago. The publishing segment posted revenue of $30.6 million, down from $33.5 million a year ago. The company attributed the decline to “the timing of the Spring issue of Martha Stewart Weddings, which was recognized in the second quarter of 2009 compared to the first quarter of 2010.” Internet revenue climbed 12% year over year to $4.7 million.
“At the midpoint for the year, we are holding our own in the marketplace as we continue to aggressively roll out new relationships with partners like The Home Depot and new offerings such as our Martha Stewart Pets line at PetSmart that position the company for attractive growth,” said executive chairman and principal executive officer Charles Koppelman in a statement. “We’re seeing continued stabilization in Publishing and strong growth in Internet. We look forward to the launch of our new block of programming on Hallmark Channel in September.”
Chief executive officer of merchandising Robin Marino said that the company’s merchandising unit had a strong quarter thanks in part to collaborations with Home Depot, Michaels, Macy’s and PetSmart.