Tuesday, July 17, 2012
Lee Enterprises Lost More Money in 3rd Quarter. Oh, and Paywalls Are Coming to "Nearly All Markets"
By Paul Friswold
on Tue, Jul 17, 2012 at 11:49 AM
In other financial news for the Post-Dispatch
's parent company, Lee's operating venue dropped 4.3 percent, a sign of the industry-wide drop in print advertising revenue. But don't worry, Lee CEO Mary Junck has a plan.
Can you say "digital subscriptions?"
In an official statement, Junck touted the success
of Lee's slow roll-out of digital subscriptions, a.k.a. online paywalls, in the 52 markets in which it has newspapers:
"We introduced digital subscriptions in 11 more markets during the quarter, for a total of 17 so far, and expect nearly all of Lee's 52 markets to follow by the end of the calendar year."
Digital advertising continues to grow for Lee, so from a business standpoint, trying to monetize their online content makes sense. For the year to date, Lee's digital advertising revenue has increased 10.1 percent. Print revenue on its own decreased 7.7 percent in the same time frame. In an interesting coincidence, Lee's average number of full-time or equivalent employees is down by a similar figure of 7.4 percent for the year-to-date.
Lee Enterprises announced a third-quarter loss of only $1.5 million, which is down quite a bit from the losses of $155 million in the same quarter of the previous year. Successfully pushing that decimal point two places to the left means that shares only lost three cents of their value in the third quarter this year, as opposed to the loss of $3.46 per share in the same time frame last year. Of course, you can only lose so much value before you hit zero, right?