• by Ray Schultz , Columnist, February 6, 2025

Lee Enterprises, which serves 72 markets, is counting on digital to supply growth and profit. But like other large publishers, it seems to be in a race against time.  

The company achieved total digital revenue of $73 million in the first quarter of its 2025 fiscal year, a 5% increase YoY. 

Moreover, revenue from digital-only subscribers rose by 14% to $22 million. Digital now makes up 51% of total operating revenue. 

Still, the company experienced a 7% decline YoY in total operating revenue to $145 million in the quarter that ended on Dec. 29, 2024. The net loss amounted to $16 million. But the firm is upbeat.

"Our first quarter results demonstrate the continued progression of our digital transformation,” says Kevin Mowbray, president and chief executive officer of Lee Enterprises. “We achieved over $300 million in Total Digital Revenue over the last twelve months, including over $100 million in Amplified Digital Agency revenue." 

But print continued to suffer. Print ad revenue declined by 19% YoY to $19.8 million. And print subscription revenue fell by 16% to $43.4 million. 

Digital ad revenue rose by 1% to $46.7 million. And subscription revenue increased by 11% to $21.5 million. But these gains were not enough to offset a 9% decline in overall subscription revenue to $64.9 million. 

"As we look forward into the rest of the fiscal year, we expect digital revenue growth to accelerate achieving full year guidance of growth between 7% and 10%,” Mowbray continues. “In addition, we have identified approximately $40 million of annualized cost reductions that we expect to have executed on by the end of the second quarter.”

It has to work quickly to make up for declining print.