Martha Stewart Living Omnimedia (NYSE: MSO) reported 2 percent Q1 revenue growth to $67.8 million. Net losses also improved, slimming to $4.2 million from $11.8 million in the year-ago quarter. In the company’s core publishing business, revenue was basically flat at $40.8 million. Excluding Blueprint, which was shuddered, revenue growth would have come in at 4 percent. Internet revenue narrowed slightly, to $3.4 million from $3.5 million, but this was largely due to the transition away from its own Martha Stewart Flowers towards an outsourced deal with 1-800-Flowers. Under the new system, the flowers business will not be included in internet revenues, but in merchandising. Online ads grew at a brisk 31 percent.  And so far, the company isn’t worried about the economy. It says that despite the uncertain outlook it’s seeing positive ad trends and not lowering its outlook.

Updated: From the earnings call: The company is moving away from its own flowers delivery business online to 1-800-FLOWERS.com-co branded version. “Our internet business again substantially improved in adjusted EBITDA, reporting a loss of $1.8 million compared with a loss of $2.3 million in the prior year quarter. Revenue was slightly down year-over-year due to the transition of flowers revenue as discussed. “

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