• by Ray Schultz , December 12, 2024

News publisher Lee Enterprises continues to place its hopes on digital, which accounted for 51% of its operating revenue in Q4.  

In fiscal 2024, the company realized $299 million in digital revenue, an 11% gain over 2023.

In contrast, print revenue fell by 21% to $312 million. Total operating revenue was $611 million. 

“The team achieved significant milestones in FY24, driving 41% revenue growth⁽ in digital subscriptions and approaching $100 million in Amplified Digital revenue for the fiscal year,” says Kevin Mowbray, president and chief executive officer of Lee Enterprises. “We successfully met our digital subscription unit target and laid a robust foundation for our digital transformation through talent investments in AI, technology expertise, and complex IT infrastructure.”

However, while “these achievements reflect strong execution of our strategy, we are not satisfied with the overall operating metrics, as we fell short of our Adjusted EBITDA target,” Mowbray adds.

Although it did not elaborate, the company says it “may be required to indemnify the previous owners of BH Media or The Buffalo News for unknown legal and other matters that may arise,” as a potential risk factor. 

But overall, Lee emphasized positive news for the fiscal period ending September 29.

Digital subscriptions grew to $84 million, up from $61 million in 2023. However, print subscription revenue fell to $197 million -- down from $252 million. 

"As we look ahead to FY25, we remain confident in the strength of our core strategy and the opportunities it presents,” Mowbray says. “We are uniquely positioned to lead the growth of local advertising driven by advancements in AI. With our vast library of hyper-local content and strong relationships with over 25,000 local advertisers, we have an unparalleled foundation to capitalize on this shift.”

Mowbray continues: “Through strategic partnerships with leading AI and technology companies, like Perplexity and ProRata.ai, that were recently announced, we aim to scale rapidly and further solidify our dominant position in the local market, unlocking new growth opportunities and delivering enhanced value to our stakeholders.”