Washington Post's Second Quarter Profits Fall 50%
The Washington Post reported a 50% drop in second quarter earnings on Friday, brought on by declining revenue from the company's Kaplan Higher Education Unit, and advertising sales.
The Washington Post Company's overall profits for the quarter were $45.6 million, down from $91.9 million last year. The poor results marked the third straight quarter of declines for the newspaper. Analysts have largely lay the blame on declining profits at Kaplan, which were hit by new Department of Education regulations on the for-profit education sector.
Kaplan's operating income fell 64% in the second quarter, and the company expects the decline to continue for the rest of the year. According to Politico, the division had preemptively scaled back enrollment and marketing to address criticism about students’ inability to repay their loans.
The Washington Post also faltered in its digital strategy, where competitors are seeing signs of growth. Advertising revenue for the company's online properties -- which include washingtonpost.com and Slate -- posted a 13% decrease.
Advertising revenue for print dropped 12% in the second quarter, while circulation for print also fell by 4% in the first half of the year.