Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 11

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 11
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 making up 35% of the Company’s consolidated revenues in 2024. Through its subsidiary Kaplan, Inc., the Company provides extensive worldwide education services for individuals, schools and businesses. The Company has devoted significant resources and attention to this division for many years, given its geographic and product diversity, the investment opportunities and growth prospects during this time, and challenges related to government regulation. Kaplan is organized into the following three operating segments: Kaplan International (KI), Kaplan Higher Education (KHE) and Supplemental Education.

KI reported revenue and operating income growth for 2024 due largely to increases at Pathways, Australia, UK Professional and Singapore. KHE revenue declined due to reduced reimbursable expenses from Purdue University Global (Purdue Global), partially offset by an increase in the fees from Purdue Global and growth in other higher education programs. KHE operating results improved in 2024 due to an increase in the Purdue Global fee recorded, partially offset by an increase in higher education development costs. Supplemental Education revenues declined slightly in 2024, while operating results improved due largely to cost reductions from lower headcount, partially offset by increased employee healthcare and pension expense.

From an operating income standpoint, television broadcasting is the Company’s largest business. The Company’s television broadcasting division reported higher revenues and operating income in 2024, due largely to a significant increase in political advertising revenue from the 2024 election cycle, partially offset by a decline in local advertising revenue. Retransmission revenues, net of network fee expense, trended down modestly in 2024 with this trend expected to continue in the future due largely to adverse subscriber trends from cord cutting. In recent years, the television broadcasting division has consistently generated significantly higher operating income amounts and operating income margins than the education division and the Company’s other reporting segments.

The Company’s manufacturing division has provided meaningful operating cash flow over the last few years, although revenues and operating results at Hoover and Dekko have been adversely impacted by lower product demand. Graham Healthcare Group (GHG) has grown substantially over the last few years and provided meaningful operating cash flow from internal growth and acquisitions. In recent years, GHG has expanded from its home health and hospice operations into new lines of business. The largest of these is CSI Pharmacy Holding Company, LLC (CSI), which provides nursing care and prescription services for patients receiving in-home infusion treatments. CSI reported significant revenue growth and substantially higher operating results in 2024 from an expansion of infusion treatment offerings and patient service areas in 2024. Automotive revenues