Martha Stewart Firm Posts Q4 Loss

Feb 23, 2005  •  Post A Comment

Martha Stewart’s legal troubles continued to loom over her company, Martha Stewart Living Omnimedia, which reported Wednesday that it swung to a fourth-quarter loss due to persistent weakness in its television and publishing divisions.

The company reported a loss of $7.2 million, compared with a year-earlier profit of $2.4 million, on a 15 percent decline in revenue to $60.2 million. For the year, the company posted a widened loss of $59.6 million, compared with red ink of $2.8 million a year earlier, on a 24 percent drop in revenue to $187.4 million.

The loss of its syndicated daily television show last year and the expiration of certain cable agreements led the company’s television division to report a sharp drop in revenue to $1.1 million for the quarter, compared with $5.9 million a year ago.

However, the company expects its TV division’s fortunes to change later this year once its new syndicated series launches in September and generates licensing fees that are estimated to be higher than those of the previous syndicated show’s.