Loss Widens at Martha Stewart

Martha Stewart Living Omnimedia Inc. said Wednesday that its second-quarter loss widened, weighed down by charges associated with its upcoming daytime TV show. But the company scored its first revenue gain in 10 quarters, boosted by advertisers returning to its flagship magazine as the founder puts her personal legal woes behind her.

The New York-based multimedia company also said it expected operating losses to narrow at the end of the year as it enjoys the benefit of its new syndicated TV show called “Martha” and the continued improvement in advertising revenue.

The company reported a loss of $33.5 million, or 65 cents a share, for the three months ended June 30. That compared with a loss of $17.8 million, or 36 cents, a year earlier.

The 2005 results included a $16.8-million charge related to the vesting of warrants granted in connection with the production of its new syndicated television show and other employee-related charges of $3.2 million.

Revenue rose 4.3% to $46 million, surpassing analysts’ expectations of $43 million.

“The momentum we began to build early in 2005 is starting to deliver a quantifiable improvement in performance,” Susan Lyne, president and chief executive, said in a statement.

In a conference call to investors Wednesday, Lyne said the company was moving “beyond repair mode and into aggressive execution.”