Lee Enterprises, Inc. reported a net loss of $12.0 million for the three months ended March 30, 2025, compared to a loss of $11.6 million in the same period last year. Total operating revenue decreased by 6.3% to $137.4 million, down from $146.6 million in the prior year. The decline in revenue was primarily driven by decreases in print advertising and subscription revenues, which fell by 11.8% and 16.1%, respectively. Digital subscription revenue, however, saw a growth of 17.4%, contributing to a total of 728,000 digital-only subscribers.
In the six-month period ending March 30, 2025, Lee Enterprises experienced a more significant decline, with total operating revenue of $281.9 million, down 6.7% from $302.2 million in the previous year. The company attributed this decline to ongoing challenges in print advertising and subscription volumes, exacerbated by a cybersecurity incident that temporarily affected operations. The net loss for the six months was $28.2 million, a substantial increase from the $10.4 million loss reported in the same period last year.
Operationally, Lee Enterprises has been focusing on digital transformation, with digital revenues now accounting for 52.8% of total operating revenue in the latest quarter. The company has made strategic investments in technology and talent to enhance user experience and expand its digital offerings. Additionally, the company reported a significant increase in restructuring costs, which rose by 57.4% due to expenses related to the cybersecurity incident and ongoing business transformation efforts.
The company's balance sheet reflects total liabilities of $660.0 million as of March 30, 2025, a slight increase from $656.5 million at the end of the previous fiscal year. The current portion of lease liabilities decreased, while long-term debt remained relatively stable at $453.5 million. Lee Enterprises has also implemented measures to improve liquidity, including reducing operating and capital expenditures and managing accounts receivable more effectively.
Looking ahead, Lee Enterprises aims to continue its focus on digital growth and operational efficiency. The company expects to navigate the challenges posed by the cybersecurity incident and market conditions while pursuing opportunities to expand its digital subscription base and enhance its advertising services. The management remains committed to transforming Lee Enterprises into a sustainable local media organization, leveraging its digital platforms to drive future growth.
About LEE ENTERPRISES, Inc
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