Washington Post Profit Down 14%

(RTTNews) - Washington Post Co. (WPO) Friday reported a 14 percent drop in profit for the second quarter, as last year's bottom line included profit from a discontinued business.

Washington Post Co. (WPO) Friday reported a 14 percent drop in profit for the second quarter, absent the profit from discontinued business recorded in the year-ago quarter.

Earnings from continuing operations improved from a year ago, driven by improved operating profit at cable television, TV broadcasting and Kaplan education, despite weak revenues at newspaper-publishing and Kaplan University segments. Nevertheless, Washington Post reported a growth in revenues, led mainly by cable and television broadcasting businesses.

Television broadcasting division revenues increased 4 percent to $99.3 million, reflecting increase in advertising demand. Revenues at the cable television rose 5 percent to $204.6 million, helped by recent rate increases, growth in commercial sales and less promotional discounts.

Meanwhile, newspaper publishing revenues declined 1 percent to $138.4 million, reflecting a 4 percent decline in print advertising revenue at the namesake newspaper. Revenue generated by online publishing activities, primarily washingtonpost.com and Slate, increased 15 percent to $29.8 million, while display online advertising revenue increased 25 percent. Online classified advertising revenue decreased 7 percent.

Education division revenues slipped 1 percent to $548.2 million, but the company was able to improve the division's operating profit to $23.7 million from $3.7 million last year.

Revenue for the second quarter increased 3 percent to $1.02 billion from $989.1 million a year ago.

Washington Post's second-quarter profit dropped to $44.7 million or $6.02 per share from $51.8 million or $6.84 per share a year ago. The prior-year quarter bottom line included $15.8 million in income from discontinued operations.

Income from continuing operations were $44.7 million or $6.02 per share compared to $36.1 million or $4.76 per share last year.

Excluding special items, income from continuing operations rose to $62.5 million or $8.47 per share from $42.8 million or $5.66 per share last year.

WPO is currently trading at $558.66, up $9.61 or 1.75%, on a volume of 24 thousand shares on the NYSE.