Lee Enterprises Total Revenue Drops, Digital Up as Ads Overtake Subscriptions

By Christiana Sciaudone • February 6, 2025

Lee Enterprises reported a drop in revenue in its Q1 fiscal results compared to the previous period and year-over-year. 

It generated $144 million in total revenue, down from $155 million a year earlier and $158.5 million in the previous quarter. Its digital business grew by 5% to $73 million and now accounts for 51% of total revenue. 

Subscription and ad revenue overall both dropped with the former reaching almost $65 million in the first fiscal quarter, down from $73 million in the previous period with digital growth unable to offset the shrinking print business. Ad revenue totaled $66.6 million compared to nearly $72 million in their fourth quarter. 

Shares of the company fell more than 10% after the open on Thursday. 

Some notable results compared to a year earlier:

  • Print ad revenue of nearly $20 million dropped 19%.
  • Digital ad revenue of almost $47 million rose 1%.
  • Print subscription revenue of $43 million fell 16%.
  • Digital subscription revenue of $21.5 million rose 11%.
  • Total operating revenue of almost $145 million was down 7%.
  • Expenses of $149 million were flat.

Lee reported a loss per share of $2.80 compared to earnings per share of 12 cents a year earlier.

The company’s digital revenue exceeded $102 million in the trailing 12 months as it aims to achieve $450 million in digital revenue by 2028. The company is leveraging AI to enhance reader engagement and advertising through initiatives like AI-powered personalization and the AI Boost program, which automates content creation. 

Starting last year, David Hoffmann, a Florida-based entrepreneur, bought large blocks of stock in Lee Enterprises. As of December 12, 2024, he, through a trust, owns nearly 10% of the company.

In October, Hoffmann spoke to The New York Times, which reported that he was not a hostile activist and planned to talk to the company’s management team. If you were looking for an update, keep looking.

Kevin Mowbray, Lee’s chief executive officer said in a statement: 

As we look forward into the rest of the fiscal year, we expect digital revenue growth to accelerate achieving full year guidance of growth between 7% and 10%. In addition, we have identified approximately $40 million of annualized cost reductions that we expect to have executed on by the end of the second quarter. We expect strong digital revenue growth combined with strong cost management of our print business to keep us on track to achieve our overall Adjusted EBITDA guidance for the fiscal year.