Earnings: MSLO's Online Ad Revenues Up 14 Percent; Overall Numbers Down Considerably


Martha Stewart’s brand lost more than a bit of its shine in Q408, as contractual minimums from its once-main retailer Kmart came to an end this quarter. Mainline: Revenue was $72.9 million in Q408, compared to $118.5 million in Q407; Kmart contractual minimums accounted for $1.2 million in Q408. In the year-ago quarter, MSLO was still printing its Blueprint magazine (it closed down last year), and both Kmart and Blueprint accounted for $38.4 million in Q407. Excluding those two items, revenues were $71.7 million in Q408, still lower compared to $80.1 million in Q407.

Internet revenues: Online ad revenues were one bright spot for the company. Revenue for the online segment was $5.9 million in Q408, compared to $7.2 million in Q407. Flowers revenue was previously recorded in the Internet segment and is now recorded, rightly, in the Merchandising segment. Excluding the flowers business, the increase in revenue for the quarter resulted from ad revenue growth of 14 percent.

Publishing: This segment, which includes magazine and books division, also saw the bleed: revenue was $41.9 million, compared to $49.4 million in the year-ago quarter. Lower ad pages and the absence of Blueprint were partially offset by ad-rate gains across all of the company’s publications, it said.

Broadcasting: Its broadcasting franchise suffered from the overall malaise in the ad industry: Revenue was $11.1 million, compared to $12.1 million in Q407, due to lower ad revenues.

Merchandising: Revenues were $13.9 million for Q408, as compared to $49.8 million in the year-ago quarter. As anticipated, the quarter included a $35 million reduction in contractual minimum royalties from Kmart as compared to the prior year.

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