Martha Stewart Living Omnimedia, Inc. (MSO)
Q2 2010 Earnings Conference Call
July 28, 2010 11:00 am ET
Katherine Nash - IR
Charles Koppelman - Executive Chairman
Robin Marino - President & CEO of Merchandising
Kelli Turner - EVP & CFO
Michael Meltz - JPMorgan
Dave Kestenbaum - Morgan Joseph
Michael Kupinski - Noble Financials
David Bank - RBC Capital Markets
Previous Statements by MSO
» Martha Stewart Living Omnimedia Inc. Q1 2010 Earnings Call Transcript
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» Martha Stewart Living Omnimedia Q2 2009 Earnings Call Transcript
Good morning and welcome to the Martha Stewart Living Omnimedia second quarter 2010 earnings conference call and webcast. All participants will be in a listen-only mode until the question and answer session of the call. At the request of Martha Stewart Living Omnimedia this call is being recorded and anyone with objections should disconnect at this time.
At this time, it is my pleasure to introduce Katherine Nash, AVP Investor relations and Corporate Communications of Martha Stewart Living Omnimedia. Katherine, you may begin when ready.
Thank you and good morning, everyone. Welcome to Martha Stewart Living Omnimedia's 2010 second quarter earnings conference call.
Before we begin, let me remind you that our discussions will contain forward-looking statements, which are made pursuant to the Private Securities Litigation Reform Act of 1995 as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict.
Actual future results and trends may differ materially from what is forecast in forward-looking statements, due to a variety of factors, many of which are described in our SEC filings.
Also, non-GAAP numbers are reconciled to GAAP in an attachment to our press release, which appears on our website at marthastewart.com.
Thank you, and now I'll turn the call over to Charles.
Thank you and good morning. At the mid point of 2010, we are holding our own in the market place, as we continue to aggressively build out our merchandising and broadcasting businesses and grow our engineering business.
We look forward to the launch of our new block of programming on Hallmark Channel in September. This is a significant move for the company, allowing us to expand our media presence, while establishing and building our brands and talent.
In publishing, we are seeing ongoing stabilization in advertising revenue. Our flagship magazine Martha Stewart Living has solid quarter, which continue to add page growth into the third quarter where the August issue was up 29% year-over-year.
We are also getting terrific results with our forthcoming small issue of weddings which has already reached the 2008 levels. Martha recently traveled to Asia and Turkey for our television show. She was met with tremendous enthusiasm from international consumers who are familiar with Martha and our media offerings to our TV programming which airs in more than 70 countries from Australia to Yemen.
Also, when number of our international publishers are interested in bringing our magazine to their readers in fact, we recently announced plans to introduce Martha Stewart Living Magazine in the U.K. The first issue was expected to launch in September and was distributed on a monthly basis throughout the U.K., New Zealand and Australia.
We also expect to launch everyday food and Martha Stewart weddings in Dubai in the coming months. Both additions will be distributed in a number of Middle Eastern countries.
By October, we will have a total of eight international additions of our magazines in circulation in more than a dozen countries. These developments are not in an [and] of themselves game changing, but they signal our commitment to the international market place and the opportunity we see here for our company. As we often say, media lease and merchandising follows.
Other developments in the quarter include the publications of Chef Emeril Lagasse's Farm to Fork in both print and digital formats. And the recent launch of our first Martha Stewart e-book, the best selling everyday food, fresh flavor fest. Speaking of everyday food, our Martha Stewart's everyday food app for the iPhone and iPod touch has been downloaded over a 160,000 times, since it launched less than six months ago.
And 38% of our, iPhone app users have registered on our website to sync content with their shopping list. This indicates that our individual platforms are successfully driving engagement across our [immediate] assets.
Our internet business had a strong quarter, with total advertising revenue up 13% compared with last year. According to comScore panel data, unique visitors in the quarter increased 9% year-over-year.
Overall unique visitors are up 15% in the first half of 2010, compared to the prior year period. It's also worth mentioning that our brand shows great vitality as a destination online. One third of visitors are coming directly to martha stewart.com rather than discovering it through search engines.
We continue to make product enhancements to our site, that show real results. We refined and upgraded search based on relevance and consumer insights. And we've upgraded our news letter program, doubling the number of email registrations we receive daily. In fact, MediaPost online magazine recently named MSLO in the top 20 of its 100 most important online publishers.
Now onto broadcasting, the Martha Stewart showed fifth season in syndication is winding down. The season wrapped in May though the show will continue to air in re-runs through early September. We are now in a transition, as we prepare for our move to hold long channel which reaches 90 million households in the U.S. with a strong viewership of women ages 25 to 54. It's an attractive demographic that is right in our sweet spot.