Quint Digital Limited has purchased an additional 2.35% stake in Lee Enterprises, Inc., an American company listed on NASDAQ. Following this acquisition, Quint Digital Limited now holds a total ownership interest of 10.70% in Lee Enterprises, Inc.
Lee Enterprises is a prominent provider of local news and information, as well as a significant advertising platform. They offer daily newspapers, rapidly expanding digital products, marketing services, innovative technology, and nearly 350 weekly and specialty publications across 73 markets in 26 states. In 2020, Lee Enterprises acquired Warren Buffet’s Berkshire Hathaway newspaper operations, including BH Media Group’s publications and The Buffalo News. Lee Enterprises holds a debt in the form of a single 25-year term loan with BH Finance LLC, a Nebraska LLC affiliated with Berkshire Hathaway, Inc., set to mature on March 16, 2045.
Furthermore, Lee Enterprises possesses a substantial majority ownership in BLOX Digital, a leading provider of digital Content Management Systems for media organizations in the USA and internationally. BLOX Digital operates as the Software as a Service division of Lee Enterprises, facilitating digital solutions for media entities and venturing into new markets. With a client base exceeding 2,000 across all 50 U.S. states, Canada, Puerto Rico, Guam, and other U.S. territories, BLOX Digital is recognized as a dependable and efficient partner for media companies of various sizes. As of the most recent reporting period (CY23), Lee Enterprises recorded total revenues amounting to $0.69 billion.
In Quarter 1, which concluded on December 24, 2023, Lee Enterprises showcased robust financial performance. Total operating revenue reached $156 million, underscoring the company’s continued growth trajectory. Particularly noteworthy was the digital segment, which saw significant advancement. Digital revenue surged to $71 million, marking an impressive 11% year-over-year increase on a same-store basis. Of this, digital subscription revenue soared to $19 million, demonstrating a remarkable 60% growth, while digital advertising revenue remained strong at $46 million despite a minor 1% decline. Amplified Digital revenue also saw a positive trend, climbing to $21 million, an increase of 4%. Concurrently, print revenue stood at $85 million, reflecting the enduring importance of traditional media channels. Notably, Lee Enterprises achieved a substantial reduction of $122 million in debt since its refinancing in March 2020, illustrating prudent financial management. Furthermore, the company exhibited growth in Adjusted EBITDA and maintained rigorous cost control over legacy business operations. These achievements were supported by strategic investments aimed at driving digital transformation, underscoring Lee Enterprises’ commitment to evolving with the changing media landscape.