Lee Enterprises reported a loss of $9.7 million for the third quarter ended June 29, after paying $19.7 million in interest expense and $21.7 million in debt financing costs in the period. The Davenport-based company – publisher of the Quad City Times and Muscatine Journal – lost 19 cents per share in the third quarter, compared with a 3 cent per share profit for the same period a year ago. Despite the loss, company officials were upbeat in their remarks to stock analysts about the growth of digital advertising revenue, mobile advertising and the launch of its "full-access" subscription initiative which seeks to convert print subscribers into paying online subscription customers.
"Early results are promising," Chairman and Chief Executive Officer Mary Junck said in the company's earnings news release, "with more than 20 percent of print subscribers activating their digital subscriptions in several of the early launch markets. And, thanks in part to a major customer service initiative, subscriber losses have been lower than expected." The Quad City Times is one of the markets which Lee is in the process of moving to the digital subscription model. “Total digital revenue in the third quarter continued its impressive growth, increasing over 17 percent, thanks to 13 percent digital advertising growth and the launch of our full-access subscription model," Junck said. "Our optimism about the full access subscription model is growing as we have now launched in 14, primarily larger markets, with the early results promising." "We plan to continue the roll out to the majority of our markets by the end of the fiscal year, and while the third quarter results are impacted by our debt refinancing costs, our enterprises continue to drive strong cash flows," Junck said. CLICK HERE to download the full news release and third quarter financial report.
