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Washington Post Reports Surge in Profit

Jul 30, 2004  •  Post A Comment

The Washington Post Co. on Friday reported a 40 percent surge in second-quarter profit, as gains in the company’s education, television broadcasting and cable businesses offset declines in magazine publishing.

The Washington-based company, which owns The Washington Post, six network-affiliated TV stations and the multiple system operator Cable One, generated a profit of $84.9 million, up from $60.6 million a year ago. Revenue advanced 16 percent to $818.4 million.

While the company’s education business, which includes the college test preparation service Kaplan, generated most of the company’s growth in the second quarter, the broadcast and cable operations registered gains as well.

The company’s six stations collectively produced a 10 percent increase in revenue to $90.2 million, fueled largely by $7.2 million in political advertising. Operating income rose 12 percent in the period to $43.7 million.

Meanwhile, Cable One posted a 10 percent rise in revenue to $126.4 million due to growth in the MSO’s high-speed data business and a basic cable rate increase levied in March. Operating income rose 19 percent to $25.2 million. However, the number of subscribers declined slightly to 711,000as a result of the rate increase.