Graham Holdings Revenue Rises 7% on Healthcare Growth
The diversified holding company reported second-quarter revenue of $1,302.5 million.
Graham Holdings (GHC), the diversified holding company, reported second-quarter revenue that rose 7% year over year to $1,302.5 million.
The results were marked by a significant increase in net income, though the gain was largely driven by non-operational items. Net income attributable to common shares rose to $281.1 million, or $64.86 a share, from $36.7 million, or $8.35 a share, in the prior-year period. This increase included a $137.0 million pre-tax noncash settlement gain resulting from a pension annuity purchase.
Adjusted net income rose to $84.2 million, or $19.46 a share, from $63.1 million, or $14.33 a share, in the second quarter of 2024. Operating income for the period increased to $83.6 million from $72.8 million. Adjusted operating cash flow rose to $119.8 million from $111.3 million.
Growth in the healthcare division helped offset declines in education. Healthcare revenue grew 22% to $247.6 million, supported by a 31% increase in CSI revenues to $148.5 million. Conversely, education division revenue declined 4% to $417.8 million, as Kaplan International revenues dropped 7% to $252.4 million.
The company completed the sale of Kaplan Languages Group on May 1, 2024, which resulted in a $5.2 million loss on the sale during the second quarter. This followed a $19.0 million pre-tax impairment charge recorded in the first quarter of 2024.
Other financial drivers included a reversal in marketable equity securities, which yielded net gains of $101.9 million compared to net losses of $11.5 million in the same quarter last year.
Graham Holdings accelerated its share buyback program in the first half of 2024, spending $122.0 million to repurchase 110,471 shares. In the first six months of 2023, the company spent $3.5 million to buy 3,978 shares.
Borrowings outstanding increased to $900.4 million as of June 30, 2024, up from $822.0 million at the end of the first quarter.