Omnimedia Endures 13% Drop, Magazines Hard-Hit
Struggling media company Martha Stewart Living Omnimedia witnessed double-digit-percentage revenue declines, given lower publishing and TV revenues in its second-quarter
reporting period.
Revenue sank 13% to $48 million. The company narrowed its losses slightly to $2.7 million from $2.9 million in the period because of operating cost cuts.
There
were continued declines in its publishing business -- which represents the bulk of its overall revenue. Revenue fell 16% to $29 million, with publishing operating losses widening to $5 million versus
$1.9 million. This segment includes magazines such as Martha Stewart Weddings and Martha Stewart Living.
Lisa Gersh, president and CEO of MSLO, stated: "We anticipated
much of the weakness in publishing, and it's important to note that while our publishing strategy is gaining traction, it will take additional time to yield the targeted results. This will slow our
planned return to profitability, but we continue to anticipate improving performance for the company in 2012."
Broadcasting revenues were cut down to $4.6 million versus $7.8 million -- all
due to fewer new TV shows. Martha Stewart Living has an ongoing programming deal with Hallmark Channel, where shows air in daytime. Broadcasting was one of the few areas to post a profit of
$536,000.
Merchandising revenues continued to represent the bulk of the good news at the company. This unit gained 12% to $14.5 million as compared to $13 million -- primarily due to
improved sales of the Martha Stewart Home Office line with Avery at Staples, design fees from JCPenney and Martha Stewart Pets line at PetSmart.
Merchandising operating income grew to $10.2
million from $8.8 million.
Recent MediaDailyNews Articles
-
Aereo Is Not Just For Cord-Cutters May 23, 6:34 p.m.
Are cord-cutters most likely to subscribe to Aereo? Not necessarily, according to early returns. CEO Chet ... -
Cars.com Drops Flag On NASCAR.com Sponsorship May 23, 6:25 p.m.
Cars.com has a need for speed. The site has a deal with Turner to sponsor a ... -
Worldwide Pay TV On The Rise, Big Growth In Asia May 23, 4:17 p.m.
North American pay TV subscribers may continue to show little or no growth for the first ... -
Activision Blizzard's Campaign Wins Grand Effie May 23, 4:12 p.m.
Video game marketer Activision Blizzards’ ad campaign “The Vet and the nOOb” for "Call of Duty: ... -
Mag Bag: Bonnier, Source Interlink Swap Mags May 23, 4:09 p.m.
Bonnier, Source Interlink Swap Mags Enthusiast publisher Bonnier Corp. continued wheeling and dealing this week with ... -
Madison Avenue Is Mad As Hell, March Mad: Takes More, Not Less Network TV May 23, 7:46 a.m.
Demand for network TV advertising, which had been lagging so far this year, surged in April ... -
NY1 Show Goes National May 22, 7:32 p.m.
Time Warner Cable (TWC) will begin distributing a show about Broadway and theater at large to ... -
TV Model: Nets, Stations Split Retrans 50/50 May 22, 6:02 p.m.
Gray Television CFO Jim Ryan suggested that networks may capture more than half of an affiliate’s ... -
Newspaper, Magazine Ad Fortunes Continue To Decline May 22, 5:59 p.m.
The release of fourth-quarter figures for newspaper advertising and first-quarter figures for magazine ad pages earlier ... -
Equifax Taps Dentsu's 360i As Lead Agency May 22, 5:24 p.m.
Data collection company Equifax has selected Dentsu shop 360i to be its lead agency -- for ...
Be the first to comment on "Omnimedia Endures 13% Drop, Magazines Hard-Hit"
Leave a Comment