Lee Enterprises Sees Q3 Digital Growth

Lee Enterprises posted $171 million in Q3 operating revenue, down from $195 million in the same quarter in 2022.

But the company has realized $70 million in total digital revenue, reflecting a 15% hike YoY. Digital now accounts for 41% of total revenue.  

Print revenue declined to $100 million from $133 million in Q3 2022. Print advertising revenue fell to $29 million from $44.8 million. And print subscription revenue hit $61 million, down from $78 million. 

Digital advertising and marketing services revenue grew to $49 million, from $46 million in Q3 2022. Digital-only subscription revenue hit $15.7 million, up from $11 million last year. 

But the company has realized $70 million in total digital revenue, reflecting a 15% hike YoY. Digital now accounts for 41% of total revenue. 

There was a $2.1 million net loss, compared to $196 million in the same quarter in 2022. 

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Print revenue declined to $100 million from $133 million in Q3 2022. Print advertising revenue fell to $29 million from $44.8 million. And print subscription revenue hit $1.8 million, down from $78 million. 

Digital advertising and marketing services revenue grew to $49 million, from $46 million in Q3 2022. Digital-only subscription revenue hit $15.7 million, up from $11 million last year. 

But advertising and marketing services revenue was affected by the elimination of certain advertising products that did not meet the company’s profitability standards.

The steady growth in digital subscriptions “gives us even more confidence in achieving our long-term goal of $100 million of digital-only subscription revenue," says Kevin Mowbray, Lee’s president and chief executive officer.

Mowbray adds, ""Subscribers to our digital products totaled 606,000 in June, up 21% compared to last year and digital-only subscription revenue accelerated to 43% growth." 

He continued, “With more visibility into the impact of persistent inflation and a softer macro environment on our operating results, we are updating our guidance resulting in full year Adjusted EBITDA of $85 million to $90 million. Our aggressive cost actions in FY23 will have a favorable impact on FY24 operating results.”

Lee Enterprises is active in 75 markets. 

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