The Associated Press relates that the company Martha Stewart Living Omnimedia managed to diminish the amount of losses registered in the first quarter of 2012. The evaluation was made after studying the report that the American business magnate presented on March 31, 2012.
Martha Stewart’s company, Martha Stewart Living Omnimedia has registered a decline in the past years. Her show didn’t do any better, either; “Martha Stewart Living” used to air in syndication until it was later on, moved to Hallmark Channel in 2010. Given the recent losses that the broadcast has registered since the beginning of the year, producers have decided to lower the transmission costs by putting an end to the show.
Despite the past events, Lisa Gersh, President and Chief Operating Officer, thinks Martha Stewart’s company might regain its financial stability in the future. Her hopes are based on the good results that they obtained by implementing new strategic initiatives. In addition, their full print and digital advertising sales teams will contribute to the improvement of the Publishing results in the second half of 2012. However, the company needs to continue registering growth in the merchandising field in order for Martha Stewart Living Omnimedia to return to profitability.
Based on the information provided in the recently released report, the company has reduced losses to $3.6 million which means that shares have dropped 5 cents. The situation was a lot worse last year when the media enterprise lost $7.1 million ad dropped 13 cents in share value. Given Martha Stewart’s previous results, analysts were expecting the company to lose up to 9 cents per share this year.
Figures show that merchandise revenue was the only one which maintained a growing trajectory. Publishing and broadcasting revenue declined causing the company’s total income to fall 5 percent to $49.8 million from $52.7 million earned last year. The business magnate did everything she could to reduce expenses and her efforts were rewarded because operating costs were 9 percent smaller this year than in 2011.