Washington Post 4Q Earnings Rise

By: (AP) The Washington Post Co. reported a sharp increase in fourth-quarter results Friday, helped by strong performances at its education, broadcast and cable divisions, but said advertising continues to be soft at its newspaper and magazine divisions.

For the three months ending Dec. 29, the publisher of The Washington Post and Newsweek earned $93.7 million, or $9.83 per share, compared with $14.5 million, or $1.53 per share, a year ago. The company did not offer a forecast for the first quarter.

The results exceeded the $7.47 per share forecast of analysts surveyed by Thomson First Call, but Wall Street was still cautious.

Shares of the company's stock fell $9.27, or 1.3%, to $700.07 in afternoon trading on the New York Stock Exchange.

Fourth-quarter revenue was $695.9 million, compared with $628.4 million a year ago, with some of the biggest gains coming in the company's Kaplan division.

Kaplan, which provides test-preparation and education services, reported a 30% increase in fourth-quarter revenue, which rose to $163.7 million.

The cable division has fourth-quarter revenue of $110.9 million, a 9% increase, while TV broadcasting rose 14% to nearly $100 million during the same period. The fourth-quarter 2002 results include a gain of $16.7 million from a cable system exchange.

Fourth-quarter revenue rose 14% at the TV broadcasting division to $100.0 million, due primarily to $20.1 million in political advertising.

The company's publishing wing was more mixed. Newspaper revenue for the fourth quarter were $223.7 million, up 6% from a year ago, while magazine revenue fell 4% to $97.7 million during the same period.

In its earnings report Friday, the company said advertising revenue at both divisions "continues to be soft," but a cost-cutting program was helping reduce expenses. Advertising revenue at the Post fell 3% for the year, despite a 2% increase in the fourth quarter.

Newspaper circulation revenue also increased 4.8% for the quarter, due chiefly to a price increase, but overall circulation dropped for the year.

For all of 2002, the company earned $203.4 million, or $21.34 per share, 11% less than the $228.6 million, or $24.06 per share, the previous year. Full-year revenue was $2.58 billion, up 7% from $2.41 billion in 2001.

Also Friday, the company said it sold its 50% stake in the International Herald Tribune to The New York Times Co. for $65 million. The sale took place Jan. 1, 2003, and will result in a pre-tax, non-operating gain of about $50 million in the first quarter of 2003.