The Washington Post Co. said Friday that its net income grew 14 percent in the second quarter, even as revenue fell in its for-profit education business and its newspaper division.
The media and education company reported net income of $51.8 million, or $6.84 per share, in the April-June period. That's up from $45.6 million, or $5.74 per share, last year.
The company booked $17.8 million in income from discontinued operations — businesses it no longer owns — during the quarter. When only counting continuing operations, its earnings declined to $34 million, or $4.48 per share compared with $47.6 million, or $6 per share, last year.
Revenue fell 5 percent to $1 billion from $1.06 billion. Lower revenue in its education and newspaper publishing divisions offset increases in cable and broadcast television and other businesses.
The company is best known for The Washington Post newspaper, but its Kaplan education business accounts for more than half of its revenue. Kaplan was once a growing business. But new federal regulations aimed at lowering student debt have led to lower enrollment at many for-profit schools. In response to federal scrutiny, Kaplan schools have raised admissions standards in recent years and given students a trial period before they commit to paying. They also have changed the way they market their programs.
The result has steadily decreasing enrollment. Kaplan's higher-education division had 67,605 students enrolled as of June 30, down 13 percent from 78,534 a year earlier.
Revenue at Kaplan fell 9 percent to $558.4 million. At its cable TV business, revenue climbed 2 percent to $195.6 million. Broadcast TV revenue rose 13 percent to $95.6 million. Revenue from newspaper publishing fell 7 percent to $151.8 million.
The company's stock fell 46 cents to $330.29 on Friday. In the last year, the stock has traded in a range of $308.50 to $405.