WashPost (WPO): Education Solid, WaPo Bad, Online Weak

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.

Key Info

  • 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.

See Also:
Newspaper Crash: A Guide to Every Gory Detail
Running the Numbers: Why Newspapers are Screwed

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