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Investor Relations

SEC Filings

10-Q
GRAHAM HOLDINGS CO filed this Form 10-Q on 11/15/1994
Entire Document
 
<PAGE>   10


                                                                             10.


and magazine paper expense.  Approximately 70 percent of the total increase in
costs and expenses relates to additional expenses associated with new
businesses.  In the first three quarters of 1994 operating income rose to
$187.0 million, an 11 percent increase over $168.8 million in the same period
last year.

NEWSPAPER DIVISION.  Newspaper division revenues were up 3 percent in the first
three quarters of 1994, over the comparable period of 1993.  Although
advertising volume at The Washington Post remained essentially unchanged at
2,491,300 inches in the first nine months of 1994, advertising revenues for the
division rose 4 percent in the period due to strong performances in general and
classified advertising volume and rates at The Post.  Circulation revenues for
the division were also essentially unchanged when compared with the first three
quarters of 1993. Average paid Daily circulation decreased slightly and average
paid Sunday circulation increased slightly at The Washington Post compared to
the prior year.

BROADCAST DIVISION.  Revenues at the broadcast division, which include the
results of the two Texas television stations purchased at the end of April,
increased 38 percent over the first nine months of 1993. In the first three
quarters of 1994 local advertising revenues rose 41 percent and national
advertising revenues increased 34 percent.  Approximately two-thirds of the
total increase in revenues is attributable to the newly acquired stations.
Political advertising in this election year contributed $ 5.1 million to the
improved revenues through September and are expected to contribute
approximately $14 million to revenues for the year. Costs and expenses at the
broadcast division increased 33 percent in the first nine months of 1994
compared with the same period last year.  The increase was due almost entirely
to the newly acquired television stations.

MAGAZINE DIVISION.  At Newsweek revenues decreased 2 percent in the first three
quarters of 1994.  The major contributor to the decline was a 3.5 percent
decrease in advertising revenues, which resulted primarily from lower rates and
volume at the domestic edition.  In the first nine months of 1994, circulation
revenues remained essentially unchanged, primarily due to lower volume and less
favorable currency rates at the international editions offset by higher
domestic rates. In the first three quarters of 1994 thirty-nine weekly issues
and two newsstand-only special issues were published versus the same number of
weekly issues but only one newsstand-only special issue in the same period last
year.

CABLE DIVISION.  Cable division revenues were down 3 percent in the first three
quarters of 1994.  Subscriber revenues fell almost 8 percent in the first nine
months of 1994, principally due to a decrease in subscriber rates attributable
to industry reregulation discussed above. This decline was partially offset by
a 2 percent increase in basic subscribers. In 1993 results also included
operations in the United Kingdom, which were subsequently sold.  Excluding
these foreign operations, cable division revenues decreased 1 percent compared
to the