Martha Stewart has been rebuilding her business since leaving jail

Martha Stewart Living Omnimedia had a net loss of $1.17m (�649,000) in the three months to 30 June, compared with loss of $33.49m a year earlier.

Sales rose 47% to $67.4m pushed higher by demand for advertising on the Martha television show, the firm's satellite radio programmes, and its magazines.

The news lifted the company's shares by $1.85, or 12%, to $17.25 in New York.

'Successfully navigated'

Martha Stewart Living has recovered since its founder was sent to jail for lying to investigators about a share sale.

Since Stewart's release from jail, the company has signed a number of new deals with companies including Federated Department Stores, builder KB Home and Kodak.

During the second quarter of this year Martha Stewart Living said that publishing revenues increased by 29%, and broadcasting sales jumped six-fold.

"We have successfully navigated a difficult period and are enjoying significant gains in advertising revenue and new business opportunities," said Susan Lyne, president and chief executive of Martha Stewart Living.

Stewart herself also has enjoyed a revival since her time in jail and has helmed the US TV series The Apprentice, signed a $2m book deal with and lined up new DVDs and merchandising deals.