Q4 2024 Lee Enterprises Inc Earnings Call Transcript
Key Points
- Lee Enterprises Inc (LEE) achieved a significant milestone by having digital revenue surpass print revenue, with digital revenue now representing 51% of total revenue.
- The digital subscription business grew revenue by 41% on a same-store basis, marking it as the fastest-growing digital subscription revenue platform in local media.
- The Amplified Digital Agency saw a 21% growth in the quarter and is approaching $100 million annually, significantly outpacing competitors.
- LEE has successfully achieved its digital subscription unit target of 771,000 and is on track to reach 1.2 million digital-only subscribers by 2028.
- Strategic AI partnerships are expected to enhance ad creative and deliver hyper-targeted campaigns, positioning LEE as a leader in AI-driven content and advertising.
- The print revenue is on a declining trend due to secular trends, impacting overall profitability.
- Despite the growth in digital revenue, the adjusted EBITDA is only expected to grow in the low-single digits next year.
- The transition to digital has required significant investment in talent and technology, which may strain resources.
- The AI partnerships are in early stages, and their impact on long-term digital goals remains uncertain.
- The company is still in the process of monetizing noncore assets to facilitate debt repayment, indicating ongoing financial restructuring.
Welcome to the Lee Enterprises' 2024 fourth-quarter webcast and conference call. This call is being recorded and will be available for replay at investors.lee.net. (Operator Instructions)
Now I will turn the call over to your host, Jared Marks, Vice President, Finance.
Good morning, and thank you for joining us. In addition to myself, speaking on this morning's call are Kevin Mowbray, President and Chief Executive Officer; Tim Millage, Vice President, Chief Financial Officer and Treasurer; and Les Ottolenghi, Chief Transformation and Commercial Officer. Nathan Bekke, Senior Vice President, Operations and Audience Strategy is also available to answer questions.
Earlier today, we issued a news release with preliminary results for our fourth fiscal quarter of 2024. It is available at lee.net as well as major financial websites. Please also refer to our earnings presentations found at investors.lee.net, which includes supplemental information.
As a reminder, this morning's
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