Washington Post 2015 Annual Report Download - page 45

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• Changes in International Regulatory and Physical Environments Could Negatively Affect
International Student Enrollments
A substantial portion of Kaplan International’s revenue comes from programs that prepare international students
to study and travel in English-speaking countries, principally the U.S., the U.K., Australia and Singapore. Kaplan
International’s ability to enroll students in these programs is directly dependent on its ability to comply with
complex regulatory environments. A recent example of this is the immigration regulatory changes in the U.K.,
which impose recruitment quotas and stringent progress criteria as requirements for the maintenance of certain
overseas student recruitment licenses. The UKVI in the U.K. regularly reviews its Tier 4 sponsor guidance.
Changes to this guidance could materially negatively impact the Kaplan businesses that hold a Tier 4 sponsor
license. Any significant changes to the regulatory environment or a natural disaster or pandemic in either the
students’ countries of origin or the countries to which they desire to travel or study could negatively affect
Kaplan’s ability to attract and retain such students, which could negatively impact Kaplan’s operating results.
• Failure to Comply With Regulations Applicable to International Operations Could Negatively Impact
Kaplan’s Business
Kaplan is subject to a wide range of regulations relating to its international operations. These include domestic
laws such as the U.S. Foreign Corrupt Practices Act, as well as the local regulatory schemes of the countries in
which Kaplan operates. Compliance with these regulations requires utmost vigilance. Failure to comply can
result in the imposition of significant penalties or revocation of Kaplan’s authority to operate in the applicable
jurisdiction, each of which could have a material adverse effect on Kaplan’s operating results.
• Changing Perceptions About the Effectiveness of Television Broadcasting in Delivering Advertising
May Adversely Effect the Profitability of Television Broadcasting
Historically, television broadcasting has been viewed as a cost-effective method of delivering various forms of
advertising. There can be no guarantee that this historical perception will guide future decisions by advertisers.
To the extent that advertisers shift advertising expenditures away from television to other media outlets, the
profitability of the Company’s television broadcasting business will suffer.
• Increased Competition Resulting From Technological Innovations in News, Information and Video
Programming Distribution Systems Could Adversely Affect the Company’s Operating Results
The continuing growth and technological expansion of Internet-based services has increased competitive pressure
on the Company’s media business. The development and deployment of new technologies have the potential to
negatively and significantly affect the Company’s media business in ways that cannot now be reliably predicted
and that may have a material adverse effect on the Company’s operating results.
• Changes in the Nature and Extent of Government Regulations Could Adversely Affect the Company’s
Television Broadcasting Business and Other Businesses
The Company’s television broadcasting business operates in a highly regulated environment. Complying with
applicable regulations has significantly increased, and may continue to increase, the costs and has reduced the
revenues of the business. Changes in regulations have the potential to negatively impact the television
broadcasting business, not only by increasing compliance costs and reducing revenues through restrictions on
certain types of advertising, limitations on pricing flexibility or other means, but also by possibly creating more
favorable regulatory environments for the providers of competing services. More generally, all of the Company’s
businesses could have their profitability or their competitive positions adversely affected by significant changes
in applicable regulations.
2015 FORM 10-K 30