Bloomberg News

Washington Post Reports Loss on Education, Newspaper Decline

November 07, 2011

(Updates share price in last paragraph.)

Nov. 4 (Bloomberg) -- Washington Post Co., publisher of the namesake newspaper, had a third-quarter loss after circulation and advertising revenue slid and sales fell in its Kaplan education unit, which has come under government scrutiny.

The net loss was $6.2 million, or 82 cents a share, compared with a profit of $60.9 million, or $6.84, a year earlier, the Washington-based company said today in a statement. Revenue declined 13 percent to $1.03 billion.

The company’s results were affected by lower student enrollments at Kaplan. Enrollment declined 29 percent at Kaplan University and Kaplan Higher Education campuses from a year earlier. Operating earnings for the third quarter fell 83 percent to $18 million at Kaplan, which accounts for more than half of total revenue.

Revenue at the newspaper division, which also includes the Herald of Everett, Washington, declined 9 percent to $149.3 million as advertising sales and circulation fell. The unit had an operating loss of $9.9 million, compared with a loss of $1.7 million a year earlier.

Washington Post fell 2.9 percent to $326.01 at 10:18 a.m. New York time. The shares had declined 24 percent this year before today.

--Editors: Peter Elstrom, Ville Heiskanen

To contact the reporter on this story: Ville Heiskanen in New York at vheiskanen@bloomberg.net

To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net


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