Washington Post profit rises, newspaper ads fall

By Robert MacMillan

NEW YORK (Reuters) - The Washington Post Co posted a higher quarterly profit and a 2 percent increase in revenue on Friday on strength in its education and cable television units, while print advertising revenue at its flagship newspaper fell 28 percent.

Like the Post. most U.S. newspaper publishers, including The New York Times Co, McClatchy Co and Gannett Co Inc, have been reporting declining ad revenue.

While ad revenue declines appear to be easing at many media companies, it is unclear whether newspaper publishers will be able to win back the advertising they have lost in recent years.

Circulation numbers released this week revealed that more people than ever before are canceling their print subscriptions and getting news for free on the Internet.

The Post reported third-quarter net income of $17.1 million, or $1.81 a share, compared with net income of $10.4 million, or $1.08 a share, in the quarter a year ago.

Revenue rose to $1.15 billion from $1.13 billion last year. Newspaper, magazine and broadcast television revenue fell.

Education division revenue rose 14 percent, while operating income fell. Cable TV revenue rose 4 percent and operating income fell 3 percent.

Kaplan and its cable TV operations make the company attractive to investors, but many people who follow the Post are interested in the performance of the Washington Post newspaper, Newsweek magazine and its other publishing properties.