Fortunately for Washington Post Company shareholders, WPO is as much an education company as a media company. The Education division had decent revenue growth but flattish operating income. (Release) Media revenue got clobbered in every division except cable. The newspaper division’s revenue shrank another 7% and operating income got chopped in half. Online revenue growth is not offsetting painful print losses.
- Education revenue up 22% to $515 million (up 12% organically). Education operating income down 2% to $38 million. Not clear why no revenue growth flowed through to operating income.
- Newspaper publishing division revenue down 7% to $210 million. Operating income dropped a horrific 50%, which includes the effect of a minor one-time gain last year.
- Print revenue dropped 13% to $113 million ($16 million drop), due to weakness in real-estate and classifieds. Help-wanted down 27%. Circ declined 3.5%.
- Online revenue up 11% to $27 million ($2.7 million gain). This is lagging most of the newspaper industry, and it is obviously not offsetting the print losses (especially when the Magazine division’s revenue is considered).
- TV broadcasting down 5% to $78 million, op inc down 9%
- Magazine revenue down 18% to $63 million
- Cable TV up 11% to $158 million; op inc. up modestly.