Washington Post profit plunges 85 percent on weak news, education revenues
(Reuters) - Washington Post Co reported an 85 percent drop in first-quarter net income on Friday on weakness in its education and newspaper businesses.
Stronger results from the television and cable operations, however, helped the company squeeze out a 0.4 percent rise in total revenue to $959.1 million.
The first-quarter earnings indicated that its namesake newspaper can't shake the problems clinging to the sector, mainly a drain in advertising revenue and the loss of readers, who are reading news elsewhere.
Total revenue at the newspaper division dropped 4 percent to $127.3 million because of lower ad sales at its print edition. It reported an operating loss of $34.5 million mainly due to severance costs.
At its education division known as Kaplan, revenue fell 3 percent to $527.8 million.
Net income for the quarter was $4.7 million, or 64 cents per share, compared with $31 million, or $4.07 per share in the same quarter last year.
(Reporting by Jennifer Saba in New York; Editing by Jeffrey Benkoe)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video