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Martha Stewart Living Omnimedia Posts Narrowed Q1 Loss

Apr 25, 2006  •  Post A Comment

Martha Stewart Living Omnimedia said Tuesday that it posted a narrowed first-quarter loss of $6.8 million, or 13 cents a share, compared with year-earlier red ink of $19.2 million, or 37 cents a share. Higher revenue at its publishing and television operations contributed to MSLO’s results.

News that the company beat analyst projections-Wall Street expected the company to lose 15 cents a share-sent MSLO’s stock climbing nearly 5 percent to $20.70 a share.

Revenue during the quarter soared 60 percent to $61.8 million from $38.7 million a year-earlier. The growth was fueled by higher advertising revenue at the company’s magazine business. According to the company, publishing revenue advanced 43 percent in the quarter, driven by a 70 percent surge in ad pages at the company’s flagship magazine, Martha Stewart Living.

That helped the publishing unit post a narrowed first-quarter loss of $100,000, compared with red ink of $8.7 million a year earlier.

The company’s TV operation reported first-quarter revenue of $11.3 million, up from $800,000 a year ago. The company attributed the TV operation’s results to revenue from the daily syndicated show “Martha,” as well as revenue derived from the Martha Stewart Living Radio channel on Sirius Satellite Radio.

Those factors helped the TV unit narrow its first-quarter loss to $300,000 from a year-ago loss of $2.3 million.