Martha Stewart Living reports deeper 3Q loss

Martha Stewart Living posts wider 3rd-quarter loss as ad slump, slow consumer spending persist

• On 11:03 am EST, Wednesday November 4, 2009

NEW YORK (AP) -- Martha Stewart's media and merchandising company posted a growing third-quarter loss Wednesday, stung by the advertising slump and slow consumer spending.

Martha Stewart Living Omnimedia Inc. lost $12.1 million, or 22 cents per share, compared with a loss of $3.7 million, or 7 cents per share, a year ago.

Revenue fell 25 percent to $49.8 million from $66.5 million.

Analysts polled by Thomson Reuters expected a loss of 9 cents per share on revenue of $51.3 million.

Shares fell 14 cents, or 2.7 percent, to $5.14 in morning trading.

In publishing, the company's biggest segment, lower magazine ad, subscription and newsstand sales cut revenue by 22 percent. The decline pushed the unit to an operating loss of $2.5 million.

TV station revenue fell 23 percent, also in part because of lower ad revenue.

The merchandise segment saw the steepest decline, with revenue down 39 percent. The company said last year's merchandise results included one-time payments from a distribution deal with Sears Canada. And the latest figures account for an expected decline in royalty revenue from the company's deal with Kmart Corp.

Internet revenue slipped 8.9 percent. The segment's operating loss widened to $2.1 million.

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