Lee Enterprises, Inc. the parent company of the Napa Valley Register and a provider of "high quality, trusted, local news, information and a major platform for advertising in 50 markets," reported second quarter and year to date financial results for the period ended March 31.
"The total revenue trend in the second quarter is the best quarterly trend in nearly four years," said Kevin Mowbray, president and CEO.
"This performance was driven by significant revenue growth at TownNews, incremental management agreement revenue and strong digital performance across our legacy businesses."
"On a stand-alone basis, revenue at TownNews increased 24.3 percent due to increased market share, including an increase in broadcast customers as well as gains in video revenue from 2018 technology acquisitions. Revenue at TownNews over the last 12 months totaled $20.9 million, an increase of 20.9 percent over the prior year," Mowbray added.
"We earned $3.9 million of revenue in the quarter from the management agreement with BH Media Group, and since its inception in July 2018 we have earned $7.8 million in revenue. Due to strong financial performance, we expect to earn more than $10 million in the first year of the agreement, exceeding initial expectations," said Mowbray.
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Mowbray also noted the following financial highlights for the quarter:
• Total revenue decreased 4 percent for the quarter, the best quarterly trend performance in nearly four years.
• Digital advertising revenue increased 5.3 percent for the quarter and represented 38.2 percent of total advertising revenue.
• Digital retail advertising, which represented 61.8 percent of total digital advertising in the March quarter, grew 4.9 percent, driven by an increase in advertising from local retailers.