MSLO Revenues Stabilize Amid Broadcast Woes

Martha-Stewart

Like many other big magazine publishers, Martha Stewart Living Omnimedia seems to be turning a corner in the second half of 2010; publishing revenues stabilized and losses diminished in the third quarter. However, the company's broadcast division continues to struggle, with particular weakness in TV ad revenues, a major revenue driver for other multimedia companies, thanks to political ad spending.

Total revenues in the first nine months were basically flat at $158.2 million, up less than 1% from $157.2 million during the same period of 2009. Total revenues in the third quarter were also basically flat at $49.7 million, down slightly from $49.8 million in the third quarter of 2009.

This included an 11% increase in publishing revenues, from $27 million to $30 million, thanks to a 9% rise in ad revenues at Martha Stewart Living. It also included a 53% jump in Internet revenues from $2.8 million to $4.3 million, and an 8% increase in merchandising revenues, from $8.9 million to $9.6 million.

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All this growth helped offset a steep decline in broadcast revenues, which tumbled 47% from $11 million to $5.8 million, reflecting the end of syndication deals. Previously, the company pegged its hopes for new broadcast revenues on a new slate on the Hallmark Channel. But during the conference call executives conceded that it was off to a slow start in terms of ratings and advertising revenue.

Perhaps reflecting the troubles at the broadcast division, MSLO also announced that it is shaking up its business operations, with group publisher Sally Preston promoted to executive vice president for media sales and marketing, replacing Janet Balis. Also leaving the company are Orlando Reece, senior vice president for broadcasting, and Christine Cook, senior vice president for digital.

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