Washington Post third quarter profits plummet

03 November 2008

The Washington Post reported that its third-quarter earnings plummeted 86 per cent compared with the same period last year, citing a writedown in the value of several of the Post's newspapers asset, a huge goodwill impairment charge and a decline in circulation and print advertising revenue at its flagship paper.

It said revenue rose 10 per cent to $1.13 billion during the quarter, from $1.02 billion during the same period last year and a net income of $10.3 million, or $1.08 per share, for the third quarter ended September 28, compared to net income of $72.5 million, or $7.60 per share, for the same period last year.

Its net profits for the first nine months of 2008 was $46.9 million compared with $205.7 million for the same period of 2007.

Losses of $59.7million, which was due to goodwill impairment charge at the company's several community newspapers which includes The Herald and the Post brought down its entire newspaper division causing an operating loss of $82.7 million for the quarter.

The company also had to underwrite $12.5 million in accelerated depreciation related to the closing of its College Park printing presses.

Circulation and print advertising revenue has taken a hit with most of the newspapers in the US and Washington Post was no different with a reported decline of 7 per cent to $196.2 million but its online publishing revenue grew by 13 per cent.