• by Ray Schultz , Columnist, February 2, 2024

Digital revenue surged for Lee Enterprises during its first quarter of the 2024 fiscal year. 

Operating revenue totaled $156 million, a 15.9% decrease from the prior year. But overall digital revenue hit $71 million, an 11% increase YoY. And digital now represents 46% of total operating revenue.

“We now have 735,000 subscribers to our digital-only products and digital-only subscription revenue grew 60% on a same-store basis," says Kevin Mowbray, president and chief executive officer of Lee Enterprises. 

Lee, which serves 73 news markets, estimates that “digital revenue will exceed print in the back half of the year,” Mowbray continues.

He adds, “This is an important milestone in our digital transformation as it results in the majority of our revenue coming from sustainable and growing sources.”

Meanwhile, print advertising revenue fell by 41.6% to $24.4 million. Digital ad revenue showed a 2.7% decrease to $47.4 million, but the company forecasts $310 million for the entire year, a 13% hike YoY.  

Net income for the quarter, which ended in December 2023, was $1 million. 

Of course, digital growth wasn’t the only factor contributing to Lee’s results. There also was a 20.9% decline in compensation costs, presumably the result of buyouts and/or layoffs. 

On another front, digital advertising and marketing services revenue, now 66% of total advertising revenue, reached $46 million. 

Digital services revenue, mostly from BLOX Digital, was recorded at $5 million for the quarter.

Mowbray concludes, “Our three pillar digital growth strategy is driving audience growth, improving consumer engagement, and increasing digital subscribers.“