Lee Enterprises, Inc., a provider of news, information and a major platform for advertising in 50 markets, reported third quarter and year-to-date financial results for the period ended June 30.
"Total revenue decreased 4.0 percent in the third quarter, matching the second quarter trend, as we continue the company's digital transformation," said Kevin Mowbray, president and CEO.
"Total digital revenue, including digital advertising and digital services, was $30.5 million for the quarter, up 5.3 percent on a same property basis compared with a year ago."
"On a stand-alone basis, revenue at TownNews increased 27.3 percent due to increased market share. Revenue at TownNews over the last 12 months totaled $22.1 million, an increase of 24.5 percent over the prior year," Mowbray added.
"We earned $3.5 million of revenue in the quarter from the management agreement with BH Media Group, and since its inception in July 2018 we have earned $11.3 million in revenue, exceeding expectations," said Mowbray.
Mowbray also noted the following financial highlights for the quarter:
• Total revenue decreased 4.0 percent for the quarter. Excluding the impact of acquisitions total revenue on a same property basis decreased 6.1 percent.
• Digital advertising revenue increased 2.8 percent for the quarter and represented 38.7 percent of total advertising revenue.
• Digital retail advertising, which represented 63.2 percent of total digital advertising in the June quarter, grew 3.3 percent, driven by an increase in advertising from local retailers.
• Monthly visits to Lee mobile, tablet, desktop and app sites averaged 74.1 million, and page views per visit, one metric we use to monitor engagement, increased 6.9 percent on a reported basis and 7.0 percent on a same property basis.
• Subscription revenue decreased 3.2 percent in the quarter. Digital-only subscribers increased 72.0 percent.
• Lee recognized net income of $6.2 million, including $3.1 million of non-cash expense related to the change in fair value of our warrants.
"We continue to transform our business models and reduce our legacy cost structure," said Vice President and CFO Tim Millage.