On November 1, 2023, Graham Holdings Co (GHC, Financial) released its earnings report for the third quarter of 2023. The company reported a net loss attributable to common shares of $23.0 million ($5.02 per share) for Q3 2023, compared to net income attributable to common shares of $32.8 million ($6.76 per share) for the same period in 2022.
Financial Performance
The company's Q3 2023 results were affected by several items, including $98.3 million in goodwill and other long-lived asset impairment charges and $16.8 million in net gains on marketable equity securities. Excluding these items, net income attributable to common shares was $48.9 million ($10.45 per share) for Q3 2023, compared to $74.2 million ($15.30 per share) for Q3 2022.
Revenue for Q3 2023 was $1,111.5 million, up 10% from $1,012.4 million in Q3 2022. The increase in revenue was driven by growth in the education, healthcare, and automotive sectors, partially offset by declines in television broadcasting, manufacturing, and other businesses.
Operating Results
The company reported an operating loss of $57.1 million for Q3 2023, compared to operating income of $59.5 million for Q3 2022. The decrease in operating results is primarily due to goodwill impairment charges at World of Good Brands and Dekko, as well as declines in television broadcasting, manufacturing, automotive, and other businesses. These were partially offset by an increase in the education sector.
Performance in the First Nine Months of 2023
For the first nine months of 2023, the company recorded net income attributable to common shares of $152.0 million ($32.14 per share), compared to $60.9 million ($12.48 per share) for the same period in 2022. Excluding certain items, net income attributable to common shares was $151.2 million ($31.96 per share) for the first nine months of 2023, compared to $196.6 million ($40.27 per share) for the same period in 2022.
Revenue for the first nine months of 2023 was $3,248.1 million, up 14% from $2,860.5 million in the first nine months of 2022. The increase in revenue was driven by growth in the education, healthcare, and automotive sectors, partially offset by declines in television broadcasting, manufacturing, and other businesses.
Division Results
The education division reported a 16% increase in revenue for Q3 2023, while the television broadcasting division reported a 14% decrease in revenue. The manufacturing division saw an 11% decrease in revenue, while the healthcare division reported a 33% increase in revenue. The automotive division reported a 29% increase in revenue for Q3 2023.
Explore the complete 8-K earnings release (here) from Graham Holdings Co for further details.
