Davenport-based newspaper publisher Lee Enterprises continues to make advances in digital revenues. In fact, digital now accounts for most of the company’s annual revenues as its print earnings continue to fall.
Those are some of the top results from the company’s preliminary fourth quarter report that was released today, Dec. 12. Lee’s CEO said the company has “achieved significant milestones” as it continues to grow its digital side of the business.
In the Quad Cities region, Lee is the publisher of the Quad-City Times, Rock Island Argus and Dispatch and Muscatine Journal newspapers. It publishes more than 350 weekly and specialty publications serving 73 markets in 26 U.S. states.
“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,” Kevin Mowbray, Lee’s president and chief executive officer, said in a Thursday news release. “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.”
Some of the highlights from the fourth quarter include:
- Total operating revenue was $159 million.
- Total digital revenue was $82 million, a 13% increase over the prior year, and represented 51% of the company’s total operating revenue.
- Revenue from digital-only subscribers totaled $24 million, up 30% over the prior year.
- Digital advertising and marketing services revenue represented 73% of the company’s total advertising revenue and totaled $52 million. Revenue at Amplified increased 21% and totaled $28 million.
- Digital services revenue, which is predominantly from BLOX Digital, totaled $5 million in the quarter.
Lee outlines highlights
Lee leaders also pointed out some of the highlights from the fiscal year, which included: Total operating revenue was $611 million and total digital revenue was $299 million. That’s an 11% increase over the prior year.
“As we look ahead to FY25, we remain confident in the strength of our core strategy and the opportunities it presents. We are uniquely positioned to lead the growth of local advertising driven by advancements in AI,” Mr. Mowbray said in the Lee news release.
“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,” he added.
“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,” Mr. Mowbray said.
Lee recently announced partnerships with the AI companies to help with the company’s advertising and journalism efforts. By using these services, Lee’s release said it aims to redefine how communities interact with local news and advertising, offering personalized content experiences and opening new avenues for local businesses to connect with their audiences.
“Perplexity is a free AI Search engine designed to revolutionize the way you discover information. Ask any question, and it searches the internet to give you an accessible, conversational, and verifiable answer. Think of Perplexity as a research partner, always on the clock, saving you valuable time by providing the precise knowledge you need,” according to information from Perplexity.
Print remains challenging
In addition to the company’s digital growth, the quarterly report also outlines Lee’s continued struggles with its print revenues. For instance, its total annual print revenue was $312 million, a 21% decrease over the prior year.
Other print revenues decreases include:
- Total print revenue for the fourth quarter went from $91 million last year to about $76.9 million this year. That’s about a 15% drop.
- Print ad revenues went from about $23 million last year in the fourth quarter to about $19.3 million this year.
- Print subscription revenues went from about $58 million last year in the quarter to about $49.1 million this year.
- Total subscriptions revenues (print and digital) went from about $77.4 million last year in the quarter to about $73 million this year.
