Ad Market Pummels MSLO, McGraw-Hill
Martha Stewart Living Omnimedia's total revenues fell 26%, from $77.1 million in the second quarter of 2008 to $57 million this year. This was due, in large part, to a 28% decline in publishing revenues, from $46.2 million to $33.5 million, the bulk of this in advertising.
Circulation revenues also dropped 22%. MSLO broadcasting revenues declined, albeit more modestly, with a 9% drop from $11.3 million to $10.3 million, which the company attributed to a small ratings decrease. Merchandising, the third pillar of MSLO's business, saw revenues tumble 45% from $16.2 million to $9 million, mostly due to the winding down of its deal with Kmart.
The one positive note was Internet revenues, which jumped 28% from $3.2 million to $4.1 million, as page views increased 59% compared to the second quarter of 2008.
McGraw Hill reported that second-quarter revenues in its business-to-business magazine publishing business (which includes BusinessWeek, Construction Week, Aviation Week) fell 10.2% to $216 million. The percentage decline at BusinessWeek may have been greater, however, as ad pages declined 34.3% in the second quarter according to the Publishers Information Bureau.