MARTHA STEWART PLANS THIRD POST-PRISON TV SERIES
Reality Show Features Troubled Women Rebuilding Their Lives
MARKETERS UNSURE OF MARTHA STEWART COMEBACK POTENTIAL
Some Take Wait-and-See Approach to New TV Shows; Others Cite High Ad Rates
PRESENTING THE NEW AND IMPROVED MARTHA STEWART
Media Mogul Promotes Her New TV Show to Advertisers and Press on Eve of the Upfront
SIRIUS AND MARTHA STEWART TO LAUNCH RADIO CHANNEL
Will Feature Round-the-Clock Martha Stewart Programming
'THE NEW YORKER' WINS FIVE ELLIES
Martha Stewart Pubs Win Two; Ms. Stewart Makes Surprise Appearance
'MARTHA STEWART LIVING' NAMES NEW PUBLISHER
Sally Preston of 'Organic Style' to Replace Suzanne Sobel
MARTHA STEWART CO. READIES LAUNCH OF 'BODY & SOUL'
New Magazine Has 60 Ad Pages and a 275,000 Circulation
'MARTHA STEWART LIVING' MAGAZINE PUBLISHER QUITS
Suzanne Sobel's Sudden Departure Comes Days Before Ms. Stewart's Prison Release
NBC PLANS NEW MARTHA STEWART DAYTIME TV SHOW
Reality Show Producer Mark Burnett to Oversee Comeback Project
FORMER ABC EXEC NAMED NEW MARTHA STEWART CO. CHIEF
Plans to Restore Ms. Stewart 'to the Core' of the Business
In a second-quarter earnings call with analysts this week, the company said that starting in January, it will raise the rate base of Living from 1.8 million to 1.9 million. Ad pages for the quarter were up 42% while sibling Everyday Food saw ad pages up by 65% for the period. Publishing segment revenues were up 34% to $31.7 million, though operating losses were $3.3 million for the quarter compared with operating losses of $3.9 million for second quarter 2004.
Overall, MSLO saw losses widen to $34.2 million compared with $17.8 million in the prior period. The company also took a $16.8 million non-cash charge relating to warrants held by TV producer Mark Burnett, who is working with company founder Martha Stewart on a new syndicated show, titled Martha.
Mr. Burnett, who was hired as a consultant to the company in September 2004, was granted 2.5 million shares of Class A stock at an exercise price of $12.59. Today that would make his warrants worth $37 million at the current stock price of $28. The warrants vest and become exercisable in various quarters and are tied to among other things ratings of the The Apprentice: Martha Stewart and Martha. The first third of those warrants vested in the second quarter.
TV segment down 40%
TV segment revenues were down 40% to $1.8 million for the second quarter. The decline was due to comparisons with last year, when the syndicated TV show Martha Stewart Living was still on air. Operating losses jumped from $3 million to $20 million in the TV segment.
Sales of Martha Stewart-branded goods at Kmart were mixed, according to MSLO CEO Susan Lyne, who said sales of garden wares and outdoor furniture were doing well, while home ranges were pacing alongside Kmart’s overall sales trends, which were down. The company is currently in the midst of negotiations with Kmart over its merchandising agreement with the company.
James Follo, chief financial and administrative officer, said MSLO expected third-quarter losses to be $12 million to $13 million, followed by a fourth-quarter profit of $11 million to $12 million.