Davenport, Iowa—Lee Enterprises, Incorporated (NASDAQ: LEE) has announced its financial outcomes for the fourth quarter, ending September 29, 2024. The company operates as a digital-first subscription service, offering premium local news and advertising to 73 markets.
Key Financial Metrics :
| Metric | Q4 2024 | YoY Change |
|---|---|---|
| Total Operating Revenue | $159M | N/A |
| Total Digital Revenue | $82M | +13% |
| Digital-only Subscription Rev. | $24M | +30% |
| Adjusted EBITDA | $17M | N/A |
Interpretation : Lee Enterprises demonstrated solid digital revenue growth with a 13% year-over-year increase. However, adjusted EBITDA, at $17 million, indicated possible pressures on operational profitability.
Segment Revenue Performance :
| Segment | Q4 2024 Revenue | YoY Change |
|---|---|---|
| Total Digital Revenue | $82M | +13% |
| Amplified Digital Agency | $28M | +21% |
Interpretation : Digital revenues accounted for 51% of total Q4 revenue. Amplified Digital Agency showed strong performance with a 21% year-over-year increase, nearing $100 million for the fiscal year.
Key Developments and Operational Highlights : - Total fiscal year 2024 operating revenue reached $611 million. - Total fiscal year digital revenue was $299 million, an 11% increase year-over-year. - The company reduced its total debt by $10 million during FY 2024, with capital expenditures totaling $9 million. - New strategic partnerships with AI and technology firms like Perplexity and ProRata.ai were announced to foster growth in local advertising.
Executive Comments : Kevin Mowbray, President and CEO, emphasized that while key digital milestones were achieved, including a 41% revenue growth in digital subscriptions, the company missed its Adjusted EBITDA target. He expressed confidence in the company’s strategy for FY 2025, focusing on leveraging AI to enhance local advertising capabilities and strengthen its market position.
Forward Guidance : Although specific future earnings projections were not detailed, the company highlighted ongoing confidence in its strategic direction, underlined by favorable debt terms and expected capital expenditures of approximately $12 million for FY 2025.
Overall, Lee Enterprises continues to advance its digital operations, with sector performance indicating robust growth potential despite operational challenges highlighted by adjusted EBITDA shortfalls. The strategic orientation towards AI enhancements signals an adaptive approach to emerging market demands.
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