• by Ray Schultz , August 1, 2024

Lee Enterprises is even more reliant on digital growth than its competitor Gannett, judging by its third-quarter 2024 results. 

The company has “achieved the inflection point where more than 50% of our revenue is digital," says Kevin Mowbray, Lee's president and chief executive officer.

Mowbray adds: “Nearly two-thirds of our total company gross margin was derived from digital sources, positioning us close to our goal of being sustainable from our digital products only.”

The firm achieved total operating revenue of $150.5 million, down from $171.3 million in the same period last year. 

Total digital revenue increased by 9% YoY to $76 million. And revenue from digital-only subscribers rose by 34% YoY to $21 million. In addition, digital advertising and marketing services generated $50 million, 72% of total advertising revenue. 

Lee now has 748,000 digital subscribers, a 23% increase YoY. 

“Digital-only subscription revenue grew 34%^, and totaled $79 million over the last twelve months, more than halfway towards our long-term target of $150 million,” Mowbray says.

“Given the strong performance of our digital revenue streams, we are reaffirming our Total Digital Revenue outlook of between $310 million and $330 million,” he adds.

In contrast, only one third of the firm’s gross margin is tied to print products in the third quarter. 

Lee sustained a net loss of $3.7 million, compared to net income of $2.1 million in the same period last year.