Cable challenges hurt Martha Stewart quarter
Martha Stewart Living Omnimedia misses Wall Street expectations as cable revenue plummets.
Little. House. On. The. Prairie.
If that wasn't indication enough, today brings confirmation: Broadcast revenue for Martha Stewart Living Omnimedia (MSO) dropped 47% to $5.8 million.
Now, to be fair, this was pretty much expected. The company had forecast a drop in broadcast revenue as Stewart's show moved from TV syndication to The Hallmark Channel.
The transition hasn't been easy. Hallmark rather ambitiously devoted the hours from 10 a.m. to 6 p.m. to a Martha Stewart block. But the syndication audience hasn't followed as expected, leading Hallmark to swap in "Little House on the Prairie" for three hours of the block.
That actually is helping with Martha Stewart's ratings, although Executive Chairman Charles Koppelman acknowledged that more needs to be done.
"At current ratings, we're still a little bit challenged," he said in a conference call with investors, according to The Hollywood Reporter. But he emphasized that the show will become profitable if things move in the right direction. Post continues after video:
The cable business contributed to a greater-than-expected loss for Martha Stewart Living Omnimedia in the third quarter. The company reported a net loss of $8.6 million, or 16 cents a share. That was better than the net loss of $12.1 million, or 22 cents a share, in the year-ago period.
Revenue was $49.7 million, nearly unchanged from the $49.8 million last year. Wall Street was expecting a smaller loss of 14 cents a share and revenue of $49.8 million.
The stock dropped 4% on the news Wednesday to the $4.50 range.
Luckily, other business segments helped offset the problems with cable. Merchandising sales were up 8% to $9.6 million. It helped that Martha Stewart products are now at Home Depot(HD) and PetSmart (PETM) in addition to Macy's (M) and Michael's stores.
And the publishing unit saw an 11% increase in revenue to $30 million.
At least the holidays are approaching. That's always good news for Stewart as customers turn to her more frequently for ideas from Halloween through the New Year.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Equities ended on their lows with the S&P 500 down 1.4%.
The S&P entered today's session with a week-to-date gain of 1.5% as investors expected reassuring words from today's Federal Open Market Committee Statement.
Stocks traded with slim losses until this afternoon's FOMC Statement and subsequent comments from Chairman Bernanke sent equities and Treasuries to their lows while also providing a significant boost to the dollar.
Today's Statement was ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
Plus, after much ado, Softbank is oh-so-close to acquiring Sprint.