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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>   8


                                                                             8.


NEWSPAPER DIVISION.  At the newspaper division revenues increased  6 percent in
the third quarter of 1994.  Advertising revenues for the division rose 7.7
percent, with a 3.4 percent increase in advertising linage at The Washington
Post from 795,400 inches in the third quarter of 1993 to 822,200 inches in the
same period this year.  Classified volume grew 6 percent in the quarter with
recruitment advertising remaining strong.  Retail linage was down 3 percent,
while general rose 15 percent compared with the same period last year.
Preprint volume increased 15.5 percent over the third quarter of 1993; lower
rates initiated at the beginning of the fourth quarter of 1993, have attracted
advertisers to preprints from other forms of outside advertising.  Circulation
revenues remained essentially unchanged compared with the third quarter of 1993
as average paid Daily circulation decreased slightly and average paid Sunday
circulation increased slightly at The Washington Post.

BROADCAST DIVISION.  Revenues at the broadcast division, which include the
results of the two Texas television stations purchased at the end of April,
increased 59.5 percent over the third quarter of 1993.  Local advertising
revenues increased 56 percent and national advertising revenues rose 52 percent
in the third quarter of 1994.  Approximately 70 percent of the total increase
in revenue is attributable to the newly acquired television stations. Political
advertising in this election year contributed $4.0 million to the improved
revenues. Costs and expenses at the broadcast division increased 52 percent in
the third quarter of 1994 over the same period last year.  The increase was due
almost entirely to the newly acquired television stations.

MAGAZINE DIVISION.  Newsweek revenues in the third quarter of 1994 increased 1
percent. Advertising revenues rose 1.5 percent, primarily due to an increase in
volume at the domestic edition and higher rates at the international editions.
Circulation revenues were up 1 percent at Newsweek.  In the third quarter
Newsweek published the same number of weekly issues (13) as in 1993.

CABLE DIVISION.  At the cable division third quarter 1994 revenues were 4
percent lower than 1993, primarily as a result of a 7 percent decline in
subscriber revenues.  This decrease in subscriber revenues is primarily a
result of the decreases in subscriber rates attributable to reregulation of the
cable industry in 1993 and 1994.  Rate reductions, effective under
reregulation, went into effect on September 1,1993 and again on July 14, 1994.
Also contributing to the decrease in revenues was the September 1993 sale of
the company's cable operations in the United Kingdom. Excluding these foreign
operations, cable division revenues decreased 1 percent in the third quarter of
1994.

OTHER BUSINESSES.  In the third quarter of 1994, revenues from other
businesses, principally Stanley H. Kaplan Educational Center, Pro Am Sports
System (PASS), and Legi-Slate, increased 2 percent.  Revenues at Kaplan rose 1
percent over the third quarter of 1993 while enrollments decreased 9 percent.