MSLO Posts First Q2 Profit Since 2008
NEW YORK-For the first time in six years, Martha Stewart Living Omnimedia (MSLO) reported net income in a second quarter, posting $1.8 million in the quarter ending on June 30.
Dan Dienst, MSLO's CEO, said the black bottom line owed to the company's focus on managing expenses "without in any way sacrificing our high-quality content and designs." Total operating expenses (comprised of production, distribution, editorial, selling, promotion, general and administrative costs) were slashed by 16.9 percent in dollars and 675 basis points as a percentage of total revenues, to 91.8 percent.
Total revenues fell 10.8 percent to $37.6 million. Merchandise revenues (consisting of Martha Stewart-branded products) were off 12 percent, and publishing revenues fell 8.1 percent. Revenues from broadcasting were down 64.5 percent.
Dienst said, "With the business stabilized, our business unit realignments behind us and efficiencies and productivity measures being rigorously monitored, we are now keenly focused on the many growth opportunities ahead of us across all verticals and all geographies. As I have said on several recent occasions, the best years for MSLO are indeed ahead of us."