Magazine article Editor & Publisher

Lee Enterprises Swings to Loss on Tumbling Revenue, Impairment Charge

Magazine article Editor & Publisher

Lee Enterprises Swings to Loss on Tumbling Revenue, Impairment Charge

Article excerpt

Lee Enterprises Inc. reported a loss for its fiscal third quarter Thursday as it took another impairment charge on top of advertising revenue that fell more than 24% from a year ago.

Lee's loss of $24.5 million, or 55 cents a share, compares with a profit of $2.8 million, or 6 cents a share. Without the $39.7 million non-cash impairment charge of the value of intangible assets including goodwill related to its joint operating agreement partnership in Tucson, Lee said it would have earned 12 cents a share. So far this year, Lee said, it has written down the value of goodwill by $264.5 million.

Total revenue for the parent of the St. Louis Post-Dispatch fell 20.5% to $203.8 million on advertising sales that tumbled 24.3%.

Retail ad revenue slid 18.4%, while classified dropped 35.2%.

Reporting the same sorts of deep declines in classified categories that its peer have for the past two weeks, Lee said combined print and online employment advertising revenue plunged 60.4%, automotive fell 30.9%, and real estate decreased 35.0%.

Online advertising revenue declined 29.3% in the quarter, driven by a plunge of 45.8% in classified.

Lee also had no good news in circulation, which has been a revenue bright spot for newspapers in these quarterly reports. The Davenport, Iowa-based publisher said circ revenue was down 6.3% for the quarter, partially, it said, because of the elimination of less profitable delivery areas.

Lee's operating expenses, however, reflect the deep cost-cutting going on throughout newspapers. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.