By: Staff Reports
Higher Business Development Costs Cited
The Washington Post Co. reported its first quarter profits fell $21.2 million, or 47%, from profits of $45.2 million during the same quarter last year. Revenue for the quarter was up 5%.
The earnings decline is largely a result of higher business development costs at Washingtonpost.Newsweek Interactive and the Kaplan Inc. educational unit, the company said. Kaplan is launching and building out several distance learning Web sites.
The decline can also be attributed to $9 million in losses arising from the company’s 42% equity investment in BrassRing Inc., an employment recruiting and career development company.
These higher costs were offset in part by a 25% improvement in the operation results at the flagship Washington Post. Advertising revenue at the paper increased 9%, while daily circulation increased 1%.
At washingtonpost.com, net revenues more than doubled, with the sale of online classifieds accounting for most of the increase.
Washington Post Co. Chairman Donald Graham said he was pleased with the progress being made in new business initiatives. “While the build-out of these businesses does depress current earnings, we believe strongly that long-term value is being created for our shareholders,” he said.
Previous 1st quarter earnings reports:
CLASSIFIED, WEB REVENUE DRIVE RESULTS AT LEE (04/21/00)
KNIGHT RIDDER EARNINGS UP 9.6% (04/20/00)
CENTRAL EARNINGS BEATS ESTIMATES (04/20/00)
TRIBUNE POSTS RECORD EARNINGS (04/17/00)
NEW YORK TIMES CO. STARTS 2000 RIGHT (04/14/00)
DOW JONES BLOWS AWAY EXPECTATIONS (04/12/00)
MEDIA GENERAL REPORTS 31% EPS INCREASE (04/11/00)
CATEGORY TV LEADS SCRIPPS EARNINGS (04/11/00)
GANNETT REPORTS FIRST QUARTER EARNINGS (04/10/00)
Copyright 2000, Editor & Publisher.