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44 LEE ENTERPRISES Lee Enterprises reports strong third quarter results with revenue and Adjusted EBITDA growth August 5 , 2021 Total operating revenue increased ( + 8 % ) over the prior year Digital revenue totaled $ 66 million ( + 48 % ) , more than one - third of total operating revenue Adjusted EBITDA ( 1 ) totaled $ 27 million , up over the prior year for second straight quarter Digital - only subscribers grew 51 % to 337,000 DAVENPORT , lowa , Aug. 05 , 2021 ( GLOBE NEWSWIRE ) Lee Enterprises , Incorporated ( NASDAQ : LEE ) , a leading provider of high quality , trusted , local news , information and a major platform for advertising in 77 markets , today reported third quarter fiscal 2021 financial results ( 2 ) for the period ended June 27 , 2021. On a GAAP basis , total operating revenue was $ 196.5 million and net income totaled $ 3.7 million in the third quarter . -- " We have made significant progress on our Three Pillar Digital Growth Strategy and our third quarter results clearly demonstrate that we are on a strong path forward to driving more recurring , sustainable revenue . " said Kevin Mowbray , President and Chief Executive Officer . " I am extremely proud to report that we posted 7.6 % growth in total operating revenue , 48.3 % growth in total digital revenue , 90.3 % growth in Amplified revenue , 36.4 % growth in digital - only audience revenue , and our second straight quarter of Adjusted EBITDA growth . " " Almost 55 % of our total operating revenue , representing $ 108 million , is subscription - based recurring revenue and , includes subscription revenue , revenue at TownNews and Amplified revenue . Subscription revenue was flat with the prior year as growth in our digital subscription platforms and improvement in full access attrition rates posted total audience growth for each month in the quarter . Digital subscriptions grew 50.5 % and now total 337,000 at the end of the quarter as we remain the fastest growing digital subscription platform in local media , " Mowbray added . " Total advertising and marketing services revenue increased 17.2 % in the quarter , and I am very proud of the focus and determination our sales organization has shown in achieving these strong results , " Mowbray added . " Total digital revenue increased 48.3 % in the quarter fueled by a 90.3 % growth at Amplified , our full service digital marketing services agency , as we continue to expand our in - house capabilities on sophisticated campaigns . We have also expanded our suite of products for SMBs as well as large regional and national accounts , including our recently announced partnership with Amazon Advertising . We are also seeing exciting growth in video revenue , which totaled $ 2.5 million in the quarter , as we better monetize our sponsorship and branded content , " Mowbray added . " While we are investing in our digital transformation , we continue to strengthen our balance sheet , " said Tim Millage , Vice President , Chief Financial Officer and Treasurer . " The principal amount of debt at the end of the third quarter totaled $ 485.2 million , down $ 13.7 million in the third quarter and down $ 90.8 million since the refinancing last March 2020. Pension and post - retirement benefit plans continue to be over funded in total , further improving our balance sheet profile . " Total Cash Costs ( 1 ) were $ 171.9 million , or down 3.3 % after adjusting for the significant temporary cost actions taken last year as a result of the pandemic . Since the acquisition of BH Media and Buffalo News ( 3 ) in March 2020 , we have realized $ 110 million in cost synergies , remaining ahead of our 2021 cost target of $ 100 million , " Millage added . THIRD QUARTER HIGHLIGHTS • Total operating revenue increased 7.6 % in the quarter compared to the same quarter a year ago . • Subscription revenue totaled $ 88.8 million , almost flat compared to the prior year . Digital - only subscriptions at the end of the quarter totaled 337,000 , or up 50.5 % compared to the same period last year . • Audiences remain strong in both print and digital due to our focus on relevant news in our local markets . Monthly average page views totaled 400 million and monthly average unique visitors totaled 49 million . • Total advertising and marketing services revenue was $ 91.1 million , a 17.2 % increase compared to the same quarter last year . • Revenue at TownNews , our SaaS content platform , increased 8.7 % in the third quarter and revenue over the last twelve months totaled $ 26.7 million . • Total digital revenue , including digital advertising , digital subscription and digital services revenue , was $ 65.6 million and represented 33.4 % of total operating revenue . Total digital revenue increased 48.3 % in the quarter . • Operating expenses totaled $ 184.4 million and Cash Costs on a pro forma basis were up 9.2 % in the quarter as a result of the one - time costs measures taken in last year as a result of the pandemic . Since the acquisition in March 2020 , we achieved $ 110 million of cash cost synergies , reaching our target established for September 2021 .