Newspaper publisher Lee Enterprises said Monday its Q2 profit fell 18% on weak print advertising despite a 54% jump in online advertising revenue; shares plummeted 16% to close at $25.82. Excluding items, EPS of $0.19 fell short of Street estimates of $0.25/share. Revenue dropped a milder 2% to $262 million, short of $267 million analyst estimates. Combined advertising fell 1.5%; classified advertising decreased 2%. Lee reported it received 30,000 postings through its partnership with Yahoo HotJobs over the last two months, calling the start a "terrific reception." Newspaper websites attracted over 11 million visits monthly. CEO Mary Junck commented on the company's online gains that its "rapid growth continues to offset softness in print advertising," but that the company remains keenly focused on "driving print revenue, increasing print and online audiences, emphasizing strong local news and controlling costs." Its $25.82 close was its lowest since October.
Sources: Press release, AP, PaidContent, TradingMarkets
Commentary: Digesting the News at Lee Enterprises [Fool.com] • Newspapers To Partner Broadly With Yahoo
Stocks/ETFs to watch: Lee Enterprises Inc. (NYSE:LEE). Competitors: Gannett Co. Inc. (NYSE:GCI), E.W. Scripps Co. (NYSE:SSP), News Corp. (NASDAQ:NWS), McClatchy Company (NYSE:MNI)
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