LEE Latest Report
1min read # Financial Performance
Lee Enterprises (Ticker: LEE) reported a total operating revenue of RMB158,574,000 on September 29, 2024. Without prior operating revenue data, a direct comparison of year-on-year changes is not possible. However, the current net profit is -9,479,000, indicating significant financial pressure as the company's operating revenue fails to cover operating costs and other expenses.
## Key Financial Data
1. **Operating Revenue**: RMB158,574,000
2. **Net Profit**: -RMB9,479,000
3. **Operating Expenses**: RMB65,002,000
4. **Interest Expenses**: RMB10,805,000
## Industry Comparison
1. **Industry-wide Analysis**:
- Pay attention to the overall trend of operating revenue changes in related industries. Although there are no specific data, it can be speculated that if the overall operating revenue of the industry grows, Lee Enterprises' performance may be poor; conversely, if the industry as a whole declines, it may be a common challenge.
- Currently, the industry is moving towards digitalization and localization, with the growth of digital subscriptions and advertising revenue being important drivers for the future.
2. **Peer Evaluation Analysis**:
- Lee Enterprises has 77 major local media operations in the industry, reaching nearly 70% of adults, showing strong market coverage.
- Digital platforms are the primary digital sources of local news, with over 47 million monthly unique visitors, indicating its competitiveness in the digital realm.
- Despite the negative profit challenge, its digital subscribers grew by 57%, showing potential in the digital subscription market.
## Conclusion
Overall, Lee Enterprises failed to achieve revenue growth, resulting in negative net profit. This may be related to high operating expenses and interest expenses. The industry is moving towards digitalization and local content, and Lee Enterprises has a certain market foundation in this area, but it still needs to improve its profitability.
## Opportunities
1. **Digital Transformation**: Continued investment in digital technology and innovation in local content may bring new revenue sources.
2. **Market Expansion**: By enhancing digital subscription services, increasing paid users, and expanding market share.
3. **Cost Control**: Optimize operating expenses, reduce unnecessary expenses, and improve profitability.
## Risks
1. **Persistent Negative Profit**: If revenue growth cannot be improved, it may affect the company's long-term survival.
2. **Intensified Competition**: In the digital media sector, intensified competition may lead to a decrease in market share.
3. **Dependence on Advertising Revenue**: Fluctuations in the advertising market may affect revenue, especially during economic downturns.
