• by Ray Schultz , Columnist, Yesterday

Lee Enterprises, which publishes over 70 newspapers in the U.S., has had a rough year between the cyber attack it suffered in February and the ongoing interest by the Hoffman Group of Companies in acquiring the firm. But it achieved a 3% increase in total digital revenue to $78 million in Q3, and digital now accounts for 55% of total operating revenue.  

In addition, the firm claims to have achieved cost savings. 

“By rigorously managing our operating expenses and continuing to grow our digital business, we are driving sustainable improvements in profitability,” says Kevin Mowbray, president and chief executive officer of Lee Enterprises. 

Lee achieved “meaningful reductions in print-related expenses and corporate overhead, while reinvesting in high-growth digital areas” during the quarter, Mowbray adds.   

The company’s net loss fell to $1.9 million during Q3, a reduction from $3.6 million last year. But it jumped during the first nine months of the fiscal year to $29.9 million, from $14 million in the same period in 2024. 

On another front, the company’s sole lender, BG Finance, waived payment of Lee’s March, April and May interest and basic rent payments to help Lee deal with the impact of the February cyber attack, and attain short-term liquidity.  

Operating revenue totaled $141 million for the quarter and $423 million for the nine months that ended June 29. But last year looked better—Lee generated $150.5 million in Q3 and $452.8 million for the nine months.  

Print advertising revenue totaled $17.4 million, down from $18.9 million in the same period last year. And it has fallen from $62 million to $53.8 million for the year to date. 

Digital ad revenue also seemed flat in the quarter, hitting $49 million, down slightly from $49.9 million in Q3 2024. For the year-to-date, it fell to $139.7 million, versus $141.7 million last year. 

However, digital subscription revenue rose to $23.4 million from $20.7 million for the quarter. And it jumped to $68.8 million for the year-to-date, compared to $60.4 million in the prior year. 

Moreover, revenue from digital-only subscribers rose by 13% YoY to $23 million. Digital advertising and marketing services revenue went to $49 million, and now makes up 74% of Lee’s total advertising revenue. 

“Digital subscription revenue continues to grow rapidly, up 16% on a same-store basis in the quarter, as we yield higher average digital subscription rates for our 670,000 digital only subscribers,” Mowbray states.