• by Erik Sass  @eriksass1, August 2, 2007

Martha Stewart Living Omnimedia saw advertising revenue in its publishing division jump 23.1% to $27.8 million in the second quarter of 2007--the strongest quarterly growth from a major magazine publisher this year. The positive ad revenue returns drove a 7.7% increase in overall revenues, to $73.4 million.

President and CEO Susan Lyne noted that ad revenue grew faster than ad pages in the second quarter, indicating that the average price per page is increasing--a positive measure of the magazines' desirability in the eyes of advertisers. Pages were up 12% at flagship title Martha Stewart Living and 22% at Everyday Food.

Internet revenues grew 12% in the second quarter to $5.2 million, largely because of a 17% increase in online ad revenues. The brand Web site marthastewart.com recorded 38 million page views in the second quarter, essentially flat with last year's 36.5 million. To attract more visitors, the company will focus on creating more original content and search-engine optimization in the second half of the year.

Although the publishing arm is booming, MSLO experienced losses in other areas of its business, including declines in merchandise sales at Kmart stores. Offsetting bad news in its retail merchandise business was the potential for new growth following the introduction of the Martha Stewart Collection at Macy's, currently underway.

In the second quarter the company also introduced its Martha Stewart Crafts line at 900 Michaels arts and crafts stores, and its Martha Stewart Colors paint palette at Lowe's.