Lee Enterprises ( (LEE) ) has released its Q4 earnings. Here is a breakdown of the information Lee Enterprises presented to its investors.
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Lee Enterprises is a digital-first subscription platform and advertising provider, operating in 73 markets across the United States, known for its local news and information services. The company recently reported its fourth quarter and full-year results for fiscal year 2024, highlighting significant growth in its digital revenue streams. Despite a shortfall in adjusted EBITDA targets, Lee Enterprises achieved 41% growth in digital subscriptions and recorded nearly $100 million in Amplified Digital revenue for the fiscal year.
The company’s key financial metrics for FY24 included total operating revenue of $611 million, with digital revenue making up 51% of this figure, totaling $299 million, an 11% increase from the previous year. In contrast, print revenue declined by 21% to $312 million. Operating expenses decreased by 7%, while adjusted EBITDA reached $65 million, indicating challenges in meeting profitability goals despite revenue growth.
During the fourth quarter, Lee Enterprises saw a digital revenue increase of 13% to $82 million, representing over half of the total revenue for the quarter. Digital-only subscription revenue surged by 30%, while Amplified Digital Agency revenue grew by 21% year-over-year, contributing $28 million in the quarter. However, operating expenses rose by 4% year-over-year for the same period, impacting overall profitability.
Looking ahead to fiscal year 2025, Lee Enterprises remains optimistic about its core strategy, particularly in leveraging AI advancements to drive local advertising growth. The company anticipates continued digital revenue growth in the range of 7% to 10% and expects adjusted EBITDA to grow in the low single digits. With strategic partnerships in place, Lee Enterprises aims to capitalize on its strong market position and unlock new growth opportunities for its stakeholders.
