A SEA OF RED: Martha Stewart Living Omnimedia posted a net loss of $8 million for the fourth quarter, due in part to write-downs in its publishing segment, compared with a $33 million profit during the same period the prior year. Revenues for the quarter were also down significantly, to $73 million from $118 million in the previous year, which included Kmart contractual minimums and Blueprint. In the media company’s publishing segment, revenues were down 15 percent to $42 million, partially due to lower ad pages, while Internet revenues fell 18 percent to $6 million. Digital ad revenues, however, rose 11 percent year-over-year and page views increased 43 percent.
MSLO wasn’t the only media company suffering Wednesday. The Washington Post Co. also reported its earnings, which included a 77 percent drop in net income to $19 million, due to a hefty impairment charge. Revenues rose 3 percent to $1.16 billion, mainly due to growth at its cable and education divisions. The newspaper division, which includes The Washington Post, reported an operating loss of $14 million, compared with operating income of $25 million the prior year, from expenses relating to a retirement program and impairment charges. Print ad revenue at The Post fell 21 percent to $102 million during the quarter and in magazine publishing — namely Newsweek — revenue dropped 18 percent to $75 million, from fewer ad pages and lower ad rates as a result of a rate base reduction to 2.6 million from 3.1 million.
— Amy Wicks
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