MSLO Cuts Q1 Loss
May 6, 2014,
NEW YORK-Significant reductions in key expense categories helped Martha Stewart Living Omnimedia (MSLO) narrow its first-quarter net loss from $3 million last year to $2.2 million this year.
Operating expenses in the quarter, which ended on March 31 were slashed by 11.9 percent. This included a 25.2 percent decrease in production, distribution and editorial expenses; a drop of 16.1 percent in selling and promotion expenses; and a 20.5 percent reduction in general and administrative expenses.
Total revenues fell 10.6 percent to $33.3 million. Merchandising revenues, including sales of Martha Stewart-branded products at retail, gained 13.7 percent to $13.1 million--thanks in part to J.C. Penney's return of the MSLO shares it purchased when the retailer embarked on its partnership with MSLO in 2011. However, MSLO's top line suffered from a 20.3 percent drop in publishing revenues, to $19.5 million, and a plummet in broadcasting revenues of 45.1 percent to $678,000.