Washington Post profits up; shares drop on education unit worries

Posted by Erina Lin on August 6, 2010 at 3:05 PM

The Washington Post Co. reported its second-quarter net income up to $91.9 million, from $12.2 million year-over-year. Continuing-operations income totaled $94.2 million, up from $21.2 million in the same period in 2009, Media Bistro reported.

The company added that its biggest business, the Kaplan test-prep and education services segment, could be hurt by the proposed rule changes at the U.S. Department of Education.

According to the rules, a university or college program would need to show its degree can lead to gainful employment in a recognised occupation in order to be eligible for government-sponsored student loans, Martket Watch reported.

The changes could "adversely affect" Kaplan's ability to retain admissions, financial aid advisors and students," according to a company statement.

However, it "cannot currently predict with reasonable accuracy the impact the proposed regulation will have on its program offerings if it (the proposed regulation) were enacted in its current form," the statement added.

The company's revenue was up 11 percent to $1.2 billion. Revenue for the television broadcasting unit rose 24 percent to $82.6 million, while that at its educational business increased 15 percent to $747.3 million.

The newspaper publishing division reported revenue up 2 percent to $172.7 million. However, print advertising revenue dropped 6 percent to $75.2 million, Reuters reported.

Shares of The Washington Post Co. dropped nearly 7 percent after the company's announcement, Market Watch reported.