Lee Enterprises posts 17 percent drop in 1st-quarter earnings
Falling advertising and circulation revenue and fewer publishing days in the first quarter led to a 17 percent drop in profit at Lee Enterprises, the owner of the Post-Dispatch said Tuesday.
Net income fell to $22.1 million, or 49 cents per share, compared with $26.7 million, or 58 cents per share, a year ago. Income from continuing operations fell to $21.8 million, or 48 cents per share, from $26.5 million, or 58 cents per share.
Analysts polled by Thomson Financial had expected earnings of 52 cents per share on sales of $293.2 million.
The Davenport, Iowa-based company reported a 6 percent drop in sales for the quarter to $279.9 million from $298.5 million.
In the first quarter a year ago, the company, which also owns the Suburban Journals of Greater St. Louis, said it recorded an additional 6 cents per share from an additional publishing day and a Sunday. The company also reported more revenue a year ago from the World Series being played in St. Louis.
Lee owns 50 daily newspapers and more than 300 weekly newspapers and specialty publications in 23 states.
CEO Mary Junck said in a statement that the company was weathering an economic slowdown "as well as possible in light of the wide-ranging impact of the real estate slump."
Combined online and newspaper real estate advertising fell 19.8 percent, the company said same day payday loans. Classified advertising sales fell 9.5 percent, with employment down 7.9 percent and automotive down 9.5 percent. National advertising revenue decreased 24.1 percent. Circulation revenue decreased 4.3 percent to $49.8 million from $52 million.
"We believe we have the right strategies and the right people to continue building on our position as, by far, the leading provider of local news, information and advertising in our markets," Junck said.