Ad Sales Spur Growth at Wash. Post Co.

By: (AP) The Washington Post Co. earned $82.5 million in its third quarter, the company reported Friday, well above the $19.9 million it earned in the year-ago period, when results were weighed down by expenses for buying out part of a stock compensation plan at its Kaplan educational unit.

Revenues rose 16 percent to $820 million from $706.1 million in the same period a year ago on strong growth throughout the company's businesses, especially education and broadcasting.

Per share earnings were $8.57 compared to $2.06 per share in the third quarter of 2003.

The company reported particularly strong earnings for its newspaper publishing and television broadcasting operations.

Revenues in the publishing division rose 6 percent to $224.9 million from $211.4 million. Print advertising revenues for The Washington Post newspaper were up 4 percent, primarily due to classified recruitment ads and special sections.

Television ad sales rose 22 percent to $91.4 million. The company sold $9.6 million in political advertising and $8 million in Olympics-related ads at its NBC affiliate properties. But earnings at its three Florida television stations were adversely affected by the hurricanes that hit the state during that period.

Magazine division earnings totaled $85.2 million, up 7 percent from last year. The increase is attributed to a 13 percent increase in ad revenues, primarily from Newsweek. Earnings from cable television operations were up 9 percent due to rising sales of digital and cable modem services for its Internet customers.

In last year's third quarter, the company recorded expenses of $74.6 million related to a partial buyout of the Kaplan stock compensation plan. In the lastest quarter, those expenses fell to $5.1 million.

Operating income for the Kaplan professional and supplemental education divisions totaled $38 million, compared to a $43.1 million operating loss for the same period of last year.

For the first nine months of 2004, the company earned $226.8 million or $23.54 per share, up from $153.6 million or $15.97 per share. Nine-month revenues rose 17 percent to $2.4 billion from $2.05 billion.

In early trading on the New York Stock Exchange, the company's shares were up $17.50 at $894.00.