Earnings: Lee Enterprises Profits Sag, But Online Revs Decline Nearly 30 Percent

Compared to the previous two weeks, the last few days have been less positive for newspaper publisher earnings reports. Following Monday’s report that Dallas publisher AH Belo’s Q2 loss widened, this morning Davenport, Iowa’s Lee Enterprises (NYSE: LEE) said that on an adjusted basis, net income fell 60 percent to $5.2 million ($0.12 per share) from $13.1 million ($0.30 per share) the year before. If impairment charges are included, Lee’s earnings swung to a loss of $24.5 million ($0.55 per share).

The revenue picture was particularly dismal, as continuing operations for the quarter decreased 20.5 percent from a year ago to $203.8 million. Combined print and online ad dollars fell 24.3 percent to $148.0 million. Even on its own, online ad revenue plunged 29.3 percent, with online retail down 1.7 percent and online classifieds down 45.8 percent. Like its more positive peers, like Gannett (NYSE: GCI), McClatchy (NYSE: MNI), Media General (NYSE: MEG) and the NYTCo (NYSE: NYT) reached profitability in Q2 thanks mostly to significant cost-cutting, Lee, the owner of the St. Louis Post-Dispatch, slashed expenses 22 percent, but it did little to offset the declines elsewhere.

2Q 2009 2Q 2008
EPS -$0.12 -$0.30
Net Income -$5.2M -$13.1M
Revenue $203.8M 256.4M

Earnings release

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