Martha Stewart Living Omnimedia reports that its Q1 publishing operating loss grew to $2.8M as revenue dipped 20 percent due to a fall-out in digital advertising and the absence of the Whole Living supplemental issue of Everday Food.

The merchandising unit was a standout performer during the period as revenues grew 13 percent to $13.1 percent and profit jumped 63 percent to $9.3M.

CEO Dan Dienst, said the results “reflect the current transition” at the New York-based company.

The 2014 focus is to grow MSLO’s business “across all verticals and with existing and new partners,” said Dienst in a statement.

Overall, MSLO cut its net loss to $2.6M from $3.2M.