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Wash Post profit up but newspaper ad slide continues
2009-10-30
WASHINGTON (AFP) - The Washington Post Co. reported a 69 percent rise in quarterly net profit on Friday despite a continuing slide in print advertising revenue at its flagship newspaper. The Post Co. posted a net profit of 17.1 million dollars, or 1.81 dollars per share, in the third quarter of the year compared with 10.4 million dollars, or 1.08 per share, in the same quarter a year ago. Revenue rose two percent to 1.15 billion dollars on strong results from the Post Co.'s education and cable television divisions but was lower at its newspaper and magazine publishing and television broadcasting divisions. Revenue at the Post Co.'s newspaper publishing division, which includes The Washington Post and a string of community newspapers, fell 20 percent to 156.3 million dollars. The newspaper division narrowed its operating loss to 23.6 million dollars compared with 82.7 million dollars in the same quarter a year ago. Print advertising revenue at the flagship Post declined 28 percent to 70.0 million dollars in the third quarter and is down 27 percent to 224.4 million dollars for the first nine months of the year. Online revenue from WashingtonPost.com declined 18 percent to 22.6 million dollars in the quarter. Daily circulation for the Post declined 3.6 percent in the first nine months of the year to 600,800 and Sunday circulation was down 3.7 percent at 840,100. Revenue fell 33 percent to 40.2 million dollars at The Post Co.'s magazine publishing division, which includes Newsweek, Slate and other titles. Advertising revenue fell a whopping 48 percent at Newsweek during the third quarter and is down 38 percent for the year. The bright side of the ledger for the Post Co. was at its educational division, where revenue increased 14 percent to 684.5 million dollars. The Post. Co. owns a string of schools and test preparation centers under the Kaplan brand. Revenue from the Post Co's cable television company, Cable One, increased four percent to 189.6 million dollars while revenue for the television broadcasting division decreased 17 percent to 64.6 million dollars. Like other US newspapers, the Post has been grappling with a steep drop in print advertising revenue, steadily declining circulation and the migration of readers to free news online. Post Co. shares lost 4.43 percent on Wall Street on Friday to close at 432.00 dollars.
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