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McGraw-Hill (NYSE: MHP) slightly exceeded the pre-tax gain it expected to get from the sale of BusinessWeek to Bloomberg last month, the company said in its Q4 earnings. The company recorded a pre-tax gain of $10.5 million ($6.7 million after-tax), or $0.02 per diluted share from the divestiture of BusinessWeek. In its Q3 report last year, McGraw-Hill projected $0.02 per share gain when the sale of BusinessWeek closed was right on the money, though the amount at the time was assumed to be $9.3 million before taxes and $5.9 million after taxes as a result of Bloomberg taking the publication off its hands. As for the results, the sale helped profits for the Information & Media segment that previously housed BusinessWeek. Naturally, revenues for the segment were down, due to the dismal ad market.
The company’s Information & Media segment’s operating profit rose 40.6 percent to $45.9 million, thank in part to the BusinessWeek sale, which was officially turned over to Bloomberg on December 1st. But revenues, including the last two months it owned BusinessWeek, revenue fell 11.4 percent to $253.3 million. Specific results for BusinessWeek or any of the other titles in the segment, including Aviation Week, J.D. Power and Associates, McGraw-Hill Construction and Platts, were not broken out.
Still, it’s safe to say that BusinessWeek did not end its association with McGraw-Hill on a positive note, except for the gains resulting from the sale to Bloomberg. BusinessWeek’s ad pages fell 33.8 percent in 2009, according to the Publishers Information Bureau data released earlier this month.