Report: Post “to Start Losing Money”

From Alley Insider:

    …because WaPo’s shriveling newspaper business is about to start losing money…

    At 24/7 Wall St, analyst Doug McIntyre notes the diverging fortunes of the New York Times Company’s newspaper business (NYT), which is growing online revenue at a healthy rate and managing to preserve most of its operating income, and the Washington Post’s newspaper business, which is shedding revenue at a 7% rate and losing operating income at a horrific 50% (in Q3) to a puny $9 million. McIntyre analyzes the two companies web properties, and attributes WaPo’s struggles to poor traffic growth.

    With only $9 million of operating income–barely break-even–it will not be long before the Washington Post’s newspaper business plunges into the red. What will follow then, presumably, is what we eventually expect to see at most newspaper companies: major cost cutting (read: firings) and restructuring.