Washington Post records 2Q profit after cost cuts
Posted by Simon Day on August 3, 2009 at 9:13 AM
The Washington Post Co. has joined other newspaper publishing firms in seeing a second quarter profit, after extensive cost cutting measures reduced losses at its newspaper division, the Washington Post announced in an article Saturday.
The Post Co. reported a US$11.4 million net come with $1.13 billion in revenue for the second quarter. This compares to a $2.7 million loss, on $1.11 billion in revenue, for the same period last year.
The Post Co. reported a US$11.4 million net come with $1.13 billion in revenue for the second quarter. This compares to a $2.7 million loss, on $1.11 billion in revenue, for the same period last year.
The majority of the Post Co.'s income is from its education sector, where its Kaplan education unit brought in 58 percent of the second quarter revenue. The company's newspaper division provided 15 percent, according to the Post.
However, the impact of advertising declines at the company's flagship was so drastic that the company was pulled into a first quarter loss despite growth at Kaplan and The Post's Cable One company.
The second quarter saw the newspaper division make expansive costs cuts, and although it posted a $89.3 million loss, the company attributed $56.8 million of this to charges related to buyouts of 220 Post employees, the Post reported.
Appreciation adjusted figures have the second quarter loss at just $18.2 million, next to $40.2 million for the first quarter.
The Post Co. estimated the annual savings of the staff reduction at $20 million per year after this year. This second quarter operating expenses of the company's newspaper were reduced by 12 percent compared with the same period in 2008.
The decline in readership at the Post Co.'s newspapers has also been slowed. The Post's daily circulation fell just 1.5 percent in the first six months of 2009 and Sunday circulation was down 2.6 percent, leaving readership at 622,700 and 858,100 respectively.
However, the impact of advertising declines at the company's flagship was so drastic that the company was pulled into a first quarter loss despite growth at Kaplan and The Post's Cable One company.
The second quarter saw the newspaper division make expansive costs cuts, and although it posted a $89.3 million loss, the company attributed $56.8 million of this to charges related to buyouts of 220 Post employees, the Post reported.
Appreciation adjusted figures have the second quarter loss at just $18.2 million, next to $40.2 million for the first quarter.
The Post Co. estimated the annual savings of the staff reduction at $20 million per year after this year. This second quarter operating expenses of the company's newspaper were reduced by 12 percent compared with the same period in 2008.
The decline in readership at the Post Co.'s newspapers has also been slowed. The Post's daily circulation fell just 1.5 percent in the first six months of 2009 and Sunday circulation was down 2.6 percent, leaving readership at 622,700 and 858,100 respectively.
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