Martha Stewart Living 4th-quarter profit holds steady following production deal with Meredith

StocksAssociated Press

Martha Stewart Living Omnimedia Inc. said Thursday its profit held steady in the fourth quarter.

The New York-based company reported net income of $6.8 million, or 12 cents per share, compared with nearly $7 million, or 12 cents per share, a year earlier. Its revenue fell 12 percent to $41.4 million.

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Martha Stewart Living Omnimedia said its publishing and merchandizing revenue decreased because of a production deal with marketing and media services company Meredith Corp. On Nov. 1, Meredith took over ad sales, circulation and production of Martha Stewart Living and Martha Stewart Wedding magazines as well as sales and marketing of the magazines' websites and some digital assets. The sides did not disclose terms of the deal, but Martha Stewart Living Omnimedia said the deal would last 10 years and would raise its operating income.

The agreement allows Martha Stewart Living and Martha Stewart Wedding to be marketed alongside Parents magazine, Better Homes and Gardens, and other Meredith publications.

For the year, the New York-based company lost $5.1 million, or 9 cents per share. It lost $1.8 million, or 3 cents per share, in 2013. Revenue fell 12 percent to $141.9 million.

Shares of Martha Stewart added 25 cents, or 5.1 percent, to $5.12 in extended trading. The stock is up 13 percent in the year to date.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MSO at http://www.zacks.com/ap/MSO

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