share, from $5.65 per share in the first six months last year, with a smaller
number of shares outstanding. Net income in 1993 does not include a one-time
credit of $11.6 million ($.98 per share) resulting from the adoption of
Statement of Financial Accounting Standards No. 109, "Accounting for Income
Taxes." Including this credit, net income in the first half of 1993 was $78.1
million ($6.63 per share).
Total revenues for the first six months of 1994 increased 3 percent to
$763.3 million, from $738.4 million in the comparable period last year.
Advertising revenues, which include the results of the two new television
stations in 1994, increased 6 percent, while circulation and subscriber
revenues fell 3 percent. Other revenues increased 9 percent over the first
half of 1993.
Total costs and expenses increased 3 percent during the first six
months of 1994 to $642.5 million, from $624.6 million in the corresponding
period of 1993. Operating expenses increased 7 percent, while selling, general
and administrative expenses decreased 6 percent compared with the first half of
1993. Normal increases in fixed costs, such as payroll and fringe benefits,
and circulation related expenses, were partially offset by lower newsprint and
magazine paper expense. Over 60 percent of the total increase relates to
additional expenses associated with the newly acquired businesses. In the
first half of 1994 operating income rose to $120.8 million, a 6 percent
increase over $113.8 million in the same period last year.
NEWSPAPER DIVISION. Newspaper division revenues were up 2 percent in the first
half of 1994, over the comparable period of 1993. Although advertising volume
at The Washington Post fell 1.2 percent in the first six months of 1994,
advertising revenues for the division rose 3 percent in the period due to
strong performances in general and classified advertising volume at The Post.
Circulation revenues for the division increased almost 1 percent when compared
with the first half of 1993. Daily circulation at The Post was essentially
even with the prior year, while Sunday circulation was up by less than 1
BROADCAST DIVISION. Revenues at the broadcast division, which include the
results of the two Texas television stations purchased at the end of April,
increased 28 percent over the first six months of 1993. In the first half of
1994 local advertising revenues rose 33 percent and national advertising
revenues increased 26 percent. Approximately 65 percent of the increase is
attributable to the newly acquired stations.
MAGAZINE DIVISION. At Newsweek revenues decreased 3 percent in the first half
of 1994. A major contributor to the decline was a 6 percent decrease in
advertising revenues, which resulted from lower rates at the domestic edition
and lower volume, despite the publication of one additional newsstand-only
issue in 1994. In the