Washington, Nov 01: The Washington Post Company has reported lower third-quarter earnings, largely due to USD 74.6 million worth of stock compensation expenses at its Kaplan Educational Service. For the three months ending September 28, the parent company of the Washington Post and Newsweek earned USD 19.9 million, or USD 2.06 per share. That compares with USD 47.8 million, or USD 4.99 per share, in the third-quarter of 2002.
The Kaplan stock compensation expense was more than 10 times higher than the USD 6.7 million in the same period a year earlier. Last month, the company announced a USD 138 million offer for about 55 per cent of the outstanding stock options at Kaplan. As of Tuesday's deadline, 100 per cent of the eligible options were tendered, and the post now estimates making a USD 117 million payout in the fourth quarter. The newspaper publishing division yesterday reported four per cent revenue growth, to USD 211.4 million. A four per cent increase in print advertising revenue at the flagship Washington Post came despite a continuing drop in circulation. In the third-quarter, daily edition sales slipped 2.1 per cent, while the Sunday paper's sales fell 1.6 per cent. Bureau Report