Washington Post Earnings Fall 85%, Circulation Drops 7.2%
by John Nolte
Bad news for the once-legendary Washington Post is good news for America…
Thanks to other businesses, including a number of television stations, The Washington Post Co. was able to make a slim profit in the first quarter of 2013, but earnings still fell 85% over last year. What dragged the company down as a whole was The Washington Post newspaper.
Daily circulation fell over 7.2%, Sunday circulation (a huge revenue day) fell by 7.7%, and overall advertising revenue fell by 8%.
In its quarterly report, the company noted that a large portion of its losses came from $25.3 million in one-time payouts for early retirement, severance, and restructuring.
As noted, much of the earnings reductions are due to “one-time” events. Whether those charges are high, low, or correct remains to be seen. As does whether the cost reductions will affect future earnings. If the staff reductions lead to a reduced paper that fewer subscribe to or buy … (think about how vacancies in a mall can gradually reduce customer traffic, leading to further vacancies, leading to …).
Bias, supporting Government Illiteracy Factories, buying labor peace and refusal to adjust to the evolving information marketplace all are having their consequences. I won’t be mourning whatever the WashPost’s doom proves to be.