Earnings: MSLO's Online Ad Revenues Up 14 Percent; Overall Numbers Down Considerably
This story was written by Rafat Ali.
Martha Stewart's brand lost more than a bit of its shine in Q408, as consumers moved towards cheaper brands in the deepening recession. 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. Back in the year-ago quarter, MSO was still printing its Blueprint magazine (it closed down last year), and both Kmart and Blueprint accounted for $38.4 million 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. Revenues for the online segment were $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.
By Rafat Ali