Post Reports Profit Drop, Citing Katrina Damage
Saturday, November 5, 2005
Hurricane Katrina's damage to The Washington Post Co.'s cable subsidiary dragged down the company's third-quarter earnings despite a rise in revenue, The Post Co. reported yesterday.
For the quarter, which ended Oct. 2, the company's net income was $66.6 million ($6.89 per share) on $873.7 million in revenue, down from $82.5 million in net income ($8.57) on $820 million in revenue in the corresponding period last year.
For the first nine months of 2005, the company reported $211.9 million in net income ($21.93) on $2.61 billion in revenue, down from $226.8 million in net income ($23.54) on $2.4 billion in revenue.
About 94,000 subscribers of Cable One Inc., a wholly owned subsidiary of The Post, were in Katrina's wake along the Gulf Coast. The company said the hurricane caused a $9.9 million loss of property, cost $4.2 million in cleanup and was responsible for $4.4 million in lost subscriber revenue. Third-quarter revenue was up 5 percent in the newspaper division compared with last year, to $235.5 million. The Post's circulation continued its slide, losing an average of 3.9 percent over the first nine months of 2005. Post daily circulation now stands at 681,600, with Sundays at 974,900.