Shares of Washington Post (WPO) are off by $4, almost a percent, at $484.50 after the company this morning reported Q1 revenue rose 11% to $1.17 billion, missing the average $1.18 billion estimate, yielding profit per share of $4.91, ahead of the average $3.82 estimate and a big improvement from the $2.04 per share a year earlier.
The company’s Kaplan test prep unit and its education products saw a 20% jump in revenue, Washington Post said. That, along with a 20% rise in broadcast television revenue and a 3% rise in cable TV revenue, helped to offset a 3% decline in the newspaper business and a 36% drop at the company’s magazines, including Newsweek.
Advertising at Newsweek dropped 38% given fewer ad pages, a circulation rate base reduction that more than cut the base in half at 1.5 million, and a drop in subscription revenue.
The magazine division did, however, manage to cut its operating loss dramatically with a reduction in manufacturing, editorial, subscription and and distribution expenses.
Print ads at the Washington Post fell 8% $69 million, while the online version of the paper and its Slate.com Web site rose 8% to $24 million.
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