• by Erik Sass , November 5, 2007

Martha Stewart Living Omnimedia turned in a strong performance in the third quarter--with revenue up 13% compared to the same period last year, to $69.3 million, the company announced Friday. The growth was due largely to the publishing division, where advertising revenue rose 40%, led by flagship title Martha Stewart Living.

According to President and CEO Susan Lyne, magazine ad revenue grew at a faster rate than magazine ad pages--an indication that increased demand is leading to price inflation. With total revenue rising 40%, ad pages were up 25% at Martha Stewart Living, 21% at Everyday Food, and 16% at Body + Soul. Lyne said rate bases at MSLO's magazines would increase by varying increments, from 25,000-50,000 per title, this January.

The company also benefited from growth in its merchandising operations, including the launch of the Martha Stewart Collection at Macy's and macys.com, and the broader distribution of Martha Stewart Crafts at independent retailers. Meanwhile, broadcasting revenues slumped somewhat, dropping about 13% to $8.8 million.

While Internet revenues rose 18% in the third quarter to $3.3 million, they were canceled out by increased expenses related to the digital platform. But MSLO remains ambitious, with new tools for personalization and community features set to launch in the near future. According to Lyne, "improving the revenue growth and financial performance of our Internet business remains a key strategic priority. We are investing in the people and other resources necessary to take our digital business to the next level."

In July, MSLO named former Yahoo sales chief Wenda Harris Millard its new president of media, overseeing MSLO's publishing, Internet, and broadcast concerns. Her new role actually marks Millard's return to the publishing world. Most recently, from 2000-2001, she was chief Internet officer for tech and gaming publisher Ziff Davis Media, as well as president of Ziff Davis Internet. In that role, Millard helped launch the smaller publisher's move to digital distribution.