Washington Post’s profit dipped in second quarter

Jerimiah Yap – Fourth Estate Cooperative Writer

New York, NY, United States (4E) – Publishing group Washington Post Co. reported a 29 percent profit loss in the second quarter. During the same period last year, Washington Post’s share was valued at $ 47.6 million or $ 6 a share. That value dropped in the second quarter of this year to $ 34 million or $ 4.48 a share. The main reason for the company’s drop in profit is its Kaplan education sector, which is classified as a for-profit.

“The company recorded $ 8.4 million in restructuring charges at the Kaplan education and newspaper units. Revenue in the education division dropped 9 percent to $ 558.4 million in the quarter,” Bloomberg reported.

Another reason for its drop in profit is its online website because Washington Post doesn’t charge readers.

“Print circulation is on a rapid decline at the Post. They need to become less of a newspaper company and much more of a digital news company and a digital advertising company. To create new sources of revenue, the company has been working to develop digital technology, such as social-marketing tools, through its research and development unit WaPo Labs,” Outsell Inc. analyst Ken Doctor said, according to Bloomberg News.

The company posted that its average daily circulation was more than 482, 000, while Sunday circulation was more than 690, 000.

While the entire print industry has suffered from declining advertising sales, Washington Post’s advertising sales declined to $ 56.7 million — a decline of 15 percent.

“Profit attributable to common shareholders rose 14 percent to $ 51.8 million or $ 6.84 a share, from $ 45.6 million or $ 5.74 a share a year earlier. Washington Post shares fell less than 1 percent to $ 330.29 at the close in New York. The stock has declined 12 percent this year,” Bloomberg added.

Billionaire Warren Buffett’s Berkshire Hathaway Inc. owns a 27 percent stake of Washington Post Co.

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