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DES MOINES, Iowa (AFX) - Newspaper publisher Lee Enterprises Inc. reported Thursday that third-quarter profits rose more than 21 percent on higher sales from increased advertising revenue.
Earnings for the quarter ended June 30 were $22.7 million, or 50 cents a share, up from $18.7 million, or 41 cents a share, a year ago.
The figures included transition costs from the acquisition of Pulitzer Inc. in June 2005, which reduced earnings by 11 cents per share this year, the company said.
Excluding transition costs, the Davenport-based company earned $27.9 million, or 61 cents a share, compared to $26.4 million, or 58 cents per share a year ago.
Those earnings matched the forecast of analysts surveyed by Thomson Financial, which said the analysts also excluded transition costs.
Lee reported sales of $310.1 million, up from $217.9 million a year ago. Analysts expected revenue of $301.5 million.
Lee chairwoman and CEO Mary Junck said strong online advertising, niche product growth and improved retail advertising sales helped the company meet expectations. She said circulation and online readership also remained strong.
"We're driving larger online audiences while maintaining our solid circulation base, and in the past quarter 36 of our newspapers reported circulation gains," she said.
Advertising revenue, excluding the addition of Pulitzer and other acquisitions, was up 1.8 percent from a year ago led by online advertising, which rose 44.3 percent. Circulation grew 0.4 percent.
Including Pulitzer, advertising rose 40.6 percent and circulation revenue was up 36.3 percent, the company said.
Lee shares fell 90 cents, or 3.3 percent, to close at $26.25 on the New York Stock Exchange. They have traded in a 52-week range of $25.84 to $44.32
Lee owns 52 daily newspapers and has a joint interest in six others, an online business and more than 300 weekly newspapers and specialty publications in 23 states. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
