Lee Enterprises, Inc. Thursday (8/6) reported net income of $5.2 million for the third quarter ended June 28, but overall revenues at the Davenport-based media company continue to fall, off 11 percent compared to the same period a year ago.
The company's print advertising and subscription revenue have been declining steadily for years, and management has touted the success of its "digital-first strategy" to move away from print advertising and print subscriptions to a digital ad and subscription revenue model.
For the third quarter, total digital revenue was $72 million and represented 57 percent of the company's total operating revenue.
Compared to the same 3 months a year ago, however, digital advertising revenue declined by 9 percent and digital subscription revenue fell by 7 percent.
Overall revenues totaled $126 million, compared to $141 million for the third quarter of last year, a drop of 8.5 percent.
Offsetting the revenue decline was a 14 percent reduction in operating expenses, led by a $4 million reduction in compensation (employee costs) and $15 million less in "other operating expenses," which were not defined in the company's consolidated statement of operations.
Interest on the company's $455-million debt fell to $5.6 million during the quarter, compared to $10.1 million for the third quarter a year ago.
The company also booked a $2.3 million gain during the quarter from insurance proceeds related to a cyber-security breach to Lee's computer network last year.
CLICK HERE to download the company's financials for the third quarter.
