Washington Post's profits dive by 50%

Education division's operating income plunges 82% in second quarter, as print and online businesses also suffer

Mark Sweney
guardian.co.uk

The Washington Post Company's profits have dropped after a tough quarter for its education arm


The Washington Post has reported a 50% plunge in profits for the second quarter of 2011, as advertising revenue at its print and online businesses suffered double-digit declines.

The Washington Post Company, which is quoted on the New York Stock Exchange, also reported that its education unit, Kaplan, had a tough quarter, with operating income plunging 82% to $20.5m and revenues falling 15% to $628.7m.

Overall profits at the Washington Post Company for the three months to the end of June were $45.6m, a 50% decline on the $91.9m the company reported in the same period last year.

At the company's newspaper publishing division total revenues fell 6% year on year in the second quarter to $172.7m.

Print ad revenue at the Washington Post fell 12% to $66.6m period on period.

Online publishing revenues, which come primarily from washingtonpost.com and online magazine Slate, fell 13% to $23.4m.

Online display advertising dropped 16% in the second quarter, compared with a 4% fall across the first six months of the year.

Online classified advertising at Washingtonpost.com fell 2% in the second quarter, but showed a 2% increase across the first six months of the year.

Circulation for the daily print edition fell 4.5% in the first six months of the year, with average daily sales standing at 531,400. The Sunday edition saw a circulation decline of 4.1% with average sales of 745,300.

The newspaper division reduced its operating loss to $2.9m in the second quarter, down from $14.3m in the equivalent period last year.