The Washington Post Company posted bleak quarterly earnings on Friday with revenues at its newspaper division falling four percent from a year ago, and an overall loss in the segment of $34.5 million.
While most of the losses arose as a result of pension and restructuring expenses, the company’s core business remains distressed as print advertising revenues fell 8 percent while circulation declined around 7%. If you want a tiny bright spot, it comes in the form of a 16% increase in online display advertising at a time when such revenue is flat or falling at other newspapers.
While the Washington Post earnings reflect a familiar story of the declining newspaper business, they are particularly discouraging because the paper does not appear to have a turnaround plan on the horizon. Whereas the New York Times has been experimenting with its digital paywall for over a year, and now has plans to create different pricing tiers, the Post’s plan to raise online digital subscription revenue remains amorphous; the company announced a paywall for this summer but the model appears so leaky that it is unlikely to bring in significant money anytime soon.
At the same time, while the New York Times has cut away all its non-core assets to focus on the flagship brand, the Washington Post Company is also figuring out how to turn around Kaplan, its troubled education segment.
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