WPO HAS 12% GAIN IN NET INCOME IN Q1.

Continuing large gains in its education division helped The Washington Post Co. to post a 12-percent gain in net income, to $66.6 million, for the first quarter of 2005 when compared to the same period in 2004, with diluted earnings per share also going up 12 percent, to $6.87.

The educational division -- which includes the Kaplan college test preparation company -- saw revenue go up 26 percent, to $325.4 million in the quarter. Newspaper revenue -- primarily from the flagship -- was up six percent, to $233 million. Percentage-wise, both the cable television and television broadcasting divisions were up four percent, to $126.4 million for the former and $79.3 million for the latter.

The Post Co.'s magazine division -- primarily Newsweek -- had revenue of 17 percent, to $69.8 million.

Ad revenue at the Post was up two percent, to $145.7 million, with "increases in zones and classified, offset by a decline in pre-prints." The company said that classified-employment ad revenue was up 10 percent, to $21.7 million, when compared to the first quarter of 2004.

The company said that newsprint expenses went up 11 percent and additionally the company bore an increased expense in pensions.

The Post Co. said that on-line revenue at its Washingtonpost.com was up 27 percent, to $17 million. "The increase is largely due to growth in local and national on-line advertising revenues of 32 percent, as well as a 24-percent increase in on-line classified advertising revenue on Washingtonpost.com," the company said.

To once again prove why The Post Co.'s Donald Graham has such contempt for Wall Street, by Friday afternoon the market whacked $17 off the company's week-high stock price of $867, which may seem like a lot, but was only two percent. Nonetheless, just because Newsweek made a little less money, the Street got all shirty with Post Co. Sheesh.