Washington Post Returns to Profit
August 1, 2009 by Mark Ellis
Filed under Business
After a rigorous volley of cost-cutting measures, newspaper giant The Washington Post Co. managed to avoid losses in its first quarter and post a profit in its second quarter. According to a report released today, the Washington Post experienced a net income of $11.4 million after taking in $1.13 billion in revenue its second quarter.
Just last year, the Washington Post had a loss of $2.7 million after taking in $1.11 billion, so this year marks a 2 percent overall increase in revenue. While the Post Co. is probably most closely associated with its newspaper division, its Kaplan education unit actually brought in 58 percent of the company’s second-quarter revenue, while its newspaper unit brought in 15 percent.
Like many other companies in the media industry, the Post Co. has suffered from a distinct drop in advertising revenue, thanks to the recession’s impact on advertiser spending. In the second quarter, the Post Co.’s newspaper division reported a net loss of $89.3 million, highlighting the difficulties that traditional media continues to face.
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