By: E&P and The Associated Press The Washington Post Co. said Friday its third-quarter profit tumbled 86 percent, primarily hurt by an accounting charge that reflects the declining value of its smaller newspapers.
The Washington-based company, whose properties include its namesake newspaper, Newsweek magazine and the Kaplan academic testing service, said earnings slid to $10.1 million, or $1.08 per share, from $72.2 million, or $7.60 per share, in the year-ago quarter.
Quarterly results included a $4.48-per-share goodwill impairment charge ($41.9 million after taxes) at its community newspapers and The Daily Herald of Everett, Wash., which have suffered -- like all other papers across the country -- from declining ad revenue because of the migration of readers of the Internet and a weakening economy that has depressed consumer and ad spending.
Total revenue at its newspaper division decreased 7% to $196.2 million in Q3 compared to the same quarter a year ago. Advertising revenue at the company's flagship paper dropped 14% to $97.2 million on big declines in classified advertising revenue. Retail and supplement revenue was down.
Online revenue at the company primarily from washingtonpost.com was up 13% to $30.8 million in Q3. Display online advertising grew 32% while classified ad revenue dropped 8% at the washingtonpost.com.
The company said that 231 employees accepted it buyout offer in March.
The company also recorded a charge of 84 cents per share related to a plant closing and a charge of $1.39 per share for unrealized foreign currency losses.
Revenue for the period grew 11 percent to $1.13 billion from $1.02 billion.
The Washington Post Co. reported improved revenue from its education and broadcast and cable television segments. The company gets just over half of its revenue from the Kaplan business.
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