Lee Enterprises reports higher third quarter earnings despite a 5 percent drop-off in overall revenues

Third quarter earnings at Lee Enterprises, Inc. have increased compared with the same period a year ago despite a nearly 5 percent drop in net revenues at the Davenport-based media company.

The company Thursday (8/4) reported earnings of $4.4 million, 8 cents per share, for the three-months ended June 26, compared with $2.14 million, 3 cents per share, for the same quarter in 2015.

Operating revenue in the third quarter totaled $151 million, down 4.9 percent from the $159 million for the three month period a year ago. The decrease reflects an 8.6 percent decline in the company's advertising and marketing service revenues.

The lower revenues were offset by a nearly 5 percent drop in operating expenses, including a 2 percent decline in compensation costs, an 11 percent drop in newsprint and ink expenses and a 60 percent decline in workforce adjustment costs.

"As we anticipated, overall revenue trends improved from the second quarter, fueled primarily by a rebound in subscription revenue and a strong performance in digital retail advertising," Lee's President and Chief
Executive Officer Kevin Mowbray, stated in the company's earnings news release.

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