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LEE ENTERPRISES Lee Enterprises reports first quarter results February 4 , 2021 Digital only subscribers totaled 286,000 , up 69 % compared to prior year Audience revenue was + 1.9 % compared to prior year Strong liquidity position with $ 37.1 million of cash on the balance sheet Achieved $ 103 million in cost synergies , exceeding year - end target DAVENPORT , Iowa ( Feb. 04 , 2021 ) -Lee Enterprises , Incorporated ( NYSE : LEE ) , a leading provider of high quality , trusted , local news , information and a major platform for advertising in 77 markets , today reported first quarter fiscal 2021 financial results ( 1 ) for the period ended December 27 , 2020 . On a GAAP basis , total operating revenue was $ 211.8 million and net income totaled $ 16.4 million in the first quarter . " We are off to a great start in fiscal year 2021 as we continue to improve our operating results mitigating the effects of the pandemic , " said Kevin Mowbray , President and Chief Executive Officer . " Adjusted EBITDA totaled $ 40.0 million in the first quarter as we continue to see sequential revenue trend improvement as total operating revenue on a pro forma basis was down 10.9 % in the first quarter compared to third and fourth quarter of fiscal year 2020 trends that were down 16.9 % and 24.7 % , respectively . As we remain focused on executing at a high level in today's uncertain advertising revenue environment , we are keenly focused on transforming our business models for the long term benefit of our shareholders , our consumers , our advertisers and our employees . " " To that end , we have made significant progress on our digital transformation strategy . Total digital revenue in the quarter totaled $ 62.5 million , or 29.4 % of our total operating revenue . Digital - only subscriptions continue to grow at a rapid rate – up 69.2 % compared to the prior year , and we now have 286,000 paid digital - only subscribers to our products that are helping drive our audience revenue performance . The growth in digital - only subscriptions and digital - only revenue helped drive a 1.9 % quarter over quarter growth in subscription revenue . " " On the advertising side , we are focused on diversifying the products and services that we offer to local advertisers . We are seeing growth at Amplified Agency , our full service digital marketing agency , and in video revenue , which combined posted a 16.5 % increase in revenue in the first quarter compared to last year . Additionally , through strong relationships in our local communities , we earned $ 3.0 million in advertising revenue from state and local political campaigns . Total advertising revenue on a pro forma basis was down 20.0 % in the first quarter , a 670 bps sequential trend improvement from the fourth quarter 2020 trends , " Mowbray added . " Town News is the digital backbone of our operations and provides a platform for enhancing our product development efforts across the organization . Revenue at TownNews on a standalone basis increased 8.5 % , continuing a long line of quarter over quarter revenue growth . With growth in audience revenue and revenue at Town News , 45 % of our total operating revenue is now subscription - based , " said Mowbray . " The first quarter marked a significant milestone in our transformation efforts as we achieved our $ 100 million cost reduction target , " said Tim Millage , Vice President , Chief Financial Officer and Treasurer . " We established this challenging goal in the spring of last year and we reached our target nine months early . We realized $ 103 million in cost synergies since the BH Media ( 4 ) and Buffalo ( 4 ) acquisitions through acquisition integration and efforts to reign in our legacy print cost structure . Strong revenue performance combined with appropriate cost management resulted in Adjusted EBITDA ( 3 ) of $ 40.0 million in the first quarter . With a learner organization , a solid post - pandemic operating strategy and a proven ability to execute give us a lot of optimism as we move past the pandemic and continue to transform into a strong digital subscription business , " Millage added . FIRST QUARTER HIGHLIGHTS • Total operating revenue was $ 211.8 million compared to $ 122.3 million in the same quarter last year , reflecting the acquisition of BH Media and Buffalo News . On a pro forma basis , total operating revenue was down 10.9 % to the same quarter last year . • Subscription revenue totaled $ 90.5 million , a 1.9 % increase compared to the prior year . Digital - only subscriptions at the end of the quarter totaled 286,000 , or up 69.2 % compared to the same period last year . • Our audiences remain strong in both print and digital due to our focus on relevant news in our local markets . Monthly average page views totaled 488 million , a 13.2 % increase compared to the prior year , and monthly average unique visitors totaled 55 million . • Total advertising revenue was $ 102.6 million , a 20.0 % decrease compared to the same quarter last year on a pro forma basis . We improved our advertising revenue trends sequentially 670 bps compared to fourth quarter 2020 trends . • Revenue at Town News increased 8.5 % in the first quarter and revenue over the last twelve months totaled $ 25.6 million . • Total digital revenue , including digital advertising , digital subscription revenue and digital services , was $ 62.5 million and represented 29.4 % of our operating revenue .