NET SLIDES 50% AT WASH POST CO.
The Washington Post Co. on Aug. 5 reported a 50 percent slide in second quarter net income to $45.5M as its Kaplan education unit failed to make the profit grade. Second period revenues declined 10 percent to $1B.
Kaplan generated $628M of revenues for the period. That was down 15 percent from last year’s performance. Operating income tumbled 82 percent to $20.4M as enrollment at Kaplan University and Kaplan higher education campuses tumbled 30 percent to 78,534 students.
WPC also was hurt on the financial front with the introduction of the Kaplan Commitment program in which students get free trial periods to help determine if the program is right for them. That cut revenues $27M in tuition revenue for the first-half.
WPC expects Kaplan’s operating income will decline for the remainder of the year. A restructuring is in the works, which could result in a “material” cost for the year.
The Washington Post-led newspaper group recorded revenues of $162.8M, down six percent from `10. Operating loss dropped to $2.9M from $14.3M.
During the first-half, WP registered a daily circulation of 531,400 and Sunday circulation of 745,300. Those numbers are down 4.5 percent and 4.1 percent, respectively.
USA NETWORK FORMS PUBLIC AFFAIRS UNIT
NBCUniversal’s USA Network has formed a public affairs division to handle efforts like cause marketing promotions tied to programming and build off of its successful “Characters Unite” anti-prejudice campaign.
Toby Graff, former senior VP of PA and corporate communications for Lifetime Networks and press secretary for then-First Lady Hillary Clinton, has been named senior VP to oversee the new unit.
She has been consulting for USA for the past two years on the “Characters Unite” campaign, an anti-discrimination effort kicked off in 2009 which had the network partnering with non-profits.
Last year’s campaign included a documentary hosted by Tom Brokaw, digital outreach and awards.
Graff’s mandate includes oversight of on-air, digital, community, employee, press and sponsorship elements of the new endeavor, the network said.
“We saw firsthand the positive effects this program had across the country and will continue to build on its success through this new division, led by Toby with her vast experience and commitment to public service,” said a statement from USA co-presidents Chris McCumber and Jeff Wachtel.
At Lifetime, Graff created its “Every Woman Counts” voter campaign and developed its “Extraordinary Women” series of profiles. She helped that network push for legislation involving backlogged DNA evidence from rape kits and anti-slavery bills geared toward women.
USA, which is 40 years old in 2011, has a potential audience of 102M homes.