DAVENPORT – After recently announcing that a $2 million printer will be installed at the Mason City Globe Gazette, parent company Lee Enterprises announced staggering losses in the print component of its business as it lets more employees go and pays the ones left even less.
In a news release on its website, lee.net, Lee revealed that print advertising and marketing services revenue decreased 6.1% from last year.
Lee further admitted that in the same quarter, subscription revenue decreased 4.8%, automotive advertising decreased 14.0%, real estate advertising decreased 6.1% and other classified advertising decreased 4.5% from last year.
In a disclosure that some would call a clue that print newspapers are a losing cause, Lee said newsprint and ink expense decreased 11.9%, but blamed that atrocious number on “a result of a reduction in newsprint volume of 11.9%.”
The numbers released by Lee show that it continues to cut employees and likely pay the ones left working there even less. Lee says the average number of full-time equivalent employees is down 3.5% from last year and compensation decreased 3.2%. This continues a trend with Lee, who has openly admitted that it outsources its work that some Americans used to perform.
Lee claims that the digital side of its business is showing “impressive growth, increasing over 17%” according to CEO Mary Junck, but the digital revenue numbers are much smaller than what print revenues historically generate. Combined print and digital advertising and marketing services revenue decreased 3.2% for Lee.
Lee’s principal amount of debt totaled $815.0 million at June 29, 2014.
