Slimmed-Down Washington Post Co. Net Income Tanks, but Revenue Up
The Washington Post Co. announced third-quarter earnings today, exactly one month after the completion of the sale of most of its newspaper publishing business to Amazon CEO Jeff Bezos.
The company's remaining divisions, which include Education and Television Broadcasting, brought in $902.4 million in Q3, up 2.8% from $877.6 million during the same quarter in 2012. WPO attributes these gains to improved results in its education division, which includes Kaplan International and Kaplan Higher Education.
While revenue was up, the Post's profit margins took a turn for the worse. Operating income for the quarter was down from $93.2 million in Q3 2012 to $81.8 million this quarter, a 12% drop. Meanwhile, net income declined even more sharply, falling 67% from $93.7 million to $30.1 million.
The company announced that it will not record the gains on its newspaper business until Q4 of 2013, but has recognized expenses of $28.4 million this quarter in relation to the sale.
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