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LEE Nasdaq· Lee Enterprises, Incorporated
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LEE Nasdaq· Lee Enterprises, Incorporated
Earnings report Q4 2023

Lee Enterprises Reports Decrease in Operating Revenue for Latest Quarter

Segments of revenue

In the latest quarter, Lee Enterprises reported a total operating revenue of $155.7 million. This represents a decrease of $29.5 million, or 15.9%, compared to the same quarter in the previous year. The company's revenue is categorized into three segments: advertising and marketing services, subscription, and other.

  • Advertising and marketing services revenue amounted to $70.9 million, down from $89.6 million in the previous year's quarter.
  • Subscription revenue was $71.3 million, compared to $79.7 million in the same quarter last year.
  • Other revenue, which includes miscellaneous sources, totaled $13.5 million, down from $15.8 million in the prior year's quarter.

Strengths

Despite the decrease in operating revenue, Lee Enterprises continues to focus on its core strategy of providing valuable, high-quality, and intensely local news, information, advertising, and marketing services to its consumers. The company has a digital-first subscription business model and has seen growth in its digital subscriber base, reaching 735,000 digital subscribers. This indicates a strong engagement with the audience and potential for future revenue growth.

Challenges

The decrease in operating revenue for the latest quarter poses a challenge for Lee Enterprises. The decline in advertising and marketing services revenue, as well as subscription revenue, contributed to the overall decrease in operating revenue. The company may need to reassess its advertising and subscription strategies to mitigate the impact of declining revenue.

Noteworthy

It is worth noting that Lee Enterprises reported a net gain of $3.6 million from curtailment/settlement gains in the non-operating expense category. This gain helped offset some of the non-operating expenses, resulting in a lower net non-operating expense of $6.4 million compared to $8.9 million in the previous year's quarter.

Summary

Lee Enterprises faced a decline in operating revenue for the latest quarter, primarily driven by decreases in advertising and marketing services revenue, as well as subscription revenue. However, the company's focus on its digital-first subscription business model and the growth in its digital subscriber base indicate potential for future revenue growth. Lee Enterprises should address the challenges posed by declining revenue and continue to leverage its local market presence and trusted brand to drive engagement and revenue in the future.

Source documents

Form 10-Q  filed on Feb 02, 2024
131 pages scanned

Reference data

Company financials Q4 revenue 156M
Analyst estimates Q4 EPS missed by NaN%
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