Graham Holdings Company reported its financial results for the third quarter of 2024 on October 30, 2024, with revenue reaching $1,207.2 million, a 9% increase from $1,111.5 million in the prior-year period. The company achieved an operating income of $81.6 million, a significant turnaround from an operating loss of $57.1 million in the third quarter of 2023.
Net income attributable to common shares for the third quarter was $72.5 million, or $16.42 per share, compared to a net loss of $23.0 million, or $5.02 per share, in the third quarter of 2023. Excluding certain items, adjusted net income attributable to common shares was $76.1 million, or $17.25 per share, up from $48.9 million, or $10.45 per share, in the prior year.
The Board of Directors authorized the repurchase of up to 500,000 shares of its Class B common stock on September 12, 2024, with 486,132 shares remaining authorized as of September 30, 2024. This demonstrates a commitment to returning value to shareholders through capital allocation.
Furthermore, the company announced a subsequent event in October 2024, involving the purchase of an irrevocable group annuity contract for $461.3 million to settle $457.9 million of defined benefit pension obligations. This transaction is estimated to result in a one-time pre-tax settlement gain of approximately $700 million in the fourth quarter of 2024, significantly boosting future profitability.
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