Martha Stewart Living Omnimedia Q2 2006 Earnings Conference Call Transcript (MSO)

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2006-07-26 10:12:49.0

Tags: Martha Stewart Living Omnimedia Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Thank you. Our first question is coming from Michael Meltz from Bear Stearns.

Michael Meltz – Bear Stearns

Great. Thank you. I have, I think, three questions. You threw out a few numbers on the publishing segment. Can you just tell us what total advertising and total circ were in the quarter as well as MSL, what advertising and circ were? Then you gave us the K-Mart comp store number. What was the K-mart total store? And I have a follow-up.

Howard Hochhauser

Okay, and Michael congratulations to you.

Michael Meltz – Bear Stearns

Thank you. Thank you. How about yourself?

Howard Hochhauser

I am still waiting to give birth to a son any minute.

Michael Meltz – Bear Stearns

Good.

Howard Hochhauser

Susan Lyne

We are very grateful that he waited until our earnings call was over.

Michael Meltz – Bear Stearns

I don't know if his wife is happy.

Howard Hochhauser

She's not. Consolidated ad revenue is up 66% of $9 million. Total circ revenue was affectively flat in the quarter. Let me just give you some detail on that. Martha Stewart Living is actually up in units and subscription. Last year we had that special wedding bookazine, which was a high cover price newsstand only magazine. So MSL when the ADC numbers come out is going to be up in the low single digits. Now you wanted MSL numbers. So MSL is up about $7 million in ad revenue and low single-digit in terms of circulation revenue. Then you had a question regarding?

Michael Meltz – Bear Stearns

Howard what's the $7 million percentage?

Howard Hochhauser

It's close to 90%.

Michael Meltz – Bear Stearns

Yeah, okay. And the K-mart total sales?

Howard Hochhauser

That's relative to the 47% pay through so what you're seeing is gains in CPMs across all advertising categories. So it went soft about November. Now you want the total sales?

Michael Meltz – Bear Stearns

Yep.

Howard Hochhauser

So total sales for the second quarter were down 8.6% and year-to-date are down 4.9%.

Michael Meltz – Bear Stearns

Okay. One follow up. You had -- you mentioned in the press release the cable deal. I would presume that's pretty high margin. Can you just give us more specifics on that and when the broadband opportunity, are there revenues attached for that or is that just to get more eyeballs on the show?

 

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