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Martha Stewart Living Reports Q4 Profit

Feb 22, 2006  •  Post A Comment

Martha Stewart Living Omnimedia said Wednesday that it swung to a fourth-quarter profit of $3 million-compared with a year-earlier loss of $7.3 million-driven by strong results at both the company’s publishing and television units. Revenue surged 40 percent to $84.5 million.

For the year, the company posted a widened loss of $75.8 million, compared with year-earlier red ink of $59.6 million. It was hurt by a $31.8 million noncash charge relating to the vesting of certain stock warrants granted to reality TV producer Mark Burnett.

The company’s television operation posted a large increase in revenue for the fourth quarter, hitting $11 million compared with $1.1 million a year ago, largely on the strength of the syndicated series “Martha,” which has sold out spot advertising through the end of the current season. Also helping the quarter was the Martha Stewart Living Radio channel on Sirius Satellite Radio. Both helped offset weaker-than-expected DVD sales.