The Washington Post Company
) fourth-quarter 2012 adjusted earnings from continuing
operations came in at $10.61 per share, up approximately 19% from
$8.91 earned in the prior-year quarter reflecting strength across
Television Broadcasting and Cable Television divisions, offset by
sluggish performance in the Education and Newspaper Publishing
Including one-time items and discontinued operations, the
company posted quarterly loss of $6.57 compared with earnings of
$8.03 per share in the year-ago quarter.
Revenue for the quarter came in at $1,050.1 million compared
with $1,040.4 million in the prior-year quarter.
division's revenue went down 6% to $544.4 million, reflecting a
15% fall in Higher Education revenue and a decline of 10% in Test
Preparation revenue, partly offset by a 9% jump in Kaplan
International revenue. The Education division saw operating loss
of $111.9 million compared with an operating income of $30.9
million in the prior-year quarter.
Total student enrollment fell 12% year-over-year and 11%
sequentially to 65,470. The company hinted that new student
enrollment edged down 1% during the quarter at Kaplan University
and Kaplan Higher Education Campuses.
revenue surged 32% to $116.2 million during the quarter, whereas
operating income rose 54% to $62.8 million, attributable to
healthy advertising demand. Moreover, political advertising also
contributed $25.9 million to the revenue.
division's revenue rose 6% to $201.7 million. The division
benefited from revenue growth registered across Internet and
telephone service revenues and higher rates but was offset by
fall in basic video subscribers' base. The division's operating
income jumped 4% to $43.4 million attributable to higher revenue
partially offset by rise in programming expenses and
Basic video subscribers fell 4.5% to 593,615. On the other
hand, high-speed data subscribers rose 1.8% to 459,235 and
telephony subscribers grew 2.5% to 184,528.
revenue came in at $162.1 million, down 6% from the year-ago
quarter. Print advertising revenue at
The Washington Post
tumbled 12% to $67.5 million, reflecting a fall in general and
retail advertising. Revenue from newspaper online publishing
activities, principally washingtonpost.com and Slate, jumped 5%
to $33.1 million, whereas display online advertising revenue
climbed 7%. Online classified advertising revenue dipped 2%.
During 2012, Post daily and Sunday circulation fell 8.6% and
6.2%, respectively, from the year-ago period.
The Newspaper division's operating income came in at $2.6
million compared with $6.8 million in the prior-year quarter.
The economy, which is still not completely out of the woods,
has been impeding the growth of publishing companies, and The
Washington Post Company is no exception. The company recently
entered into a deal to sell its daily and Sunday newspaper,
, based in Everett, Wash., La Raza, to Black Press Ltd. and its
subsidiary Sound Publishing.
The New York Times Company
) is yet another example of publishing companies which are
shedding assets. Last year in September, the company completed
the sale of About Group, which it acquired in 2005, to I
Moreover, in May 2012, the company divested its remaining
stake (210 Class B units) in the Fenway Sports Group. The company
in Dec 2011 sold the Regional Media Group. Now, it intends to
sell its New England Media Group, including
The Boston Globe
and its allied properties.
Washington Post's Zacks Rank
Currently The Washington Post Company holds a Zacks Rank #3
(Hold). Other stocks worth considering in the publishing industry
The E. W. Scripps Company
), which holds a Zacks Rank #1 (Strong Buy) and
Lee Enterprises, Incorporated
), which carries a Zacks Rank #2 (Buy).
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WASHINGTON POST (WPO): Free Stock Analysis
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