The Washington Post Co. lost money in the first quarter, as advertising revenue fell 33% at the namesake newspaper and the company’s education and cable TV businesses couldn’t make up the difference.
The publisher, whose properties also include Newsweek magazine and Kaplan education services, lost $19.2 million, or $2.04 per share, compared with a profit of $38.8 million, or $4.08 per share, in the year-ago quarter.
The newspaper division reported an operating loss of $54 million. And to punctuate that unit’s decline, cable TV revenue overtook publishing for the first time. Now newspapers bring The Washington Post Co. less revenue than either cable or Kaplan education services, two units that have helped shield the company from the publishing industry’s woes. However, Kaplan was not as much of a help as usual in the first quarter. The education group’s revenue climbed 9% to $593.5 million, but higher costs and restructuring charges cut the unit’s operating income by 76%.
Overall, first-quarter results included $16.9 million in restructuring costs at Kaplan, a $13.4 million write-down on the value of The Washington Post newspaper and $6.6 million in early retirement costs at Newsweek.
Revenue slid 1% to $1.05 billion from $1.06 billion, mostly because of falling ad sales in the newspaper, television and magazine divisions.
Online ad revenue had been growing steadily for years, but like other newspapers, the Post has seen that trend reverse. Online revenue, primarily from WashingtonPost.com, fell 8%.
The broadcast TV and magazine divisions also felt the advertising pinch, falling 21% and 14% respectively.
Cable revenue was up 5% to $183.5 million, surpassing the newspaper division, which saw its overall revenue fall 22% to $160.9 million.
