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Digital ads are up, benefits down at Lee

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Newspaper publisher Lee Enterprises Inc. reported a 4.9 percent overall decline in advertising revenues in the quarter that ended June 27 despite a 24.8 percent increase in digital advertising. Translated into dollars, ad revenues decreased by $7.2 million for the quarter, and digital ad revenues improved by $2.6 million.

The Davenport-based company also reported significant ongoing savings due to cuts in post-retirement medical plans. In December 2009, Lee announced changes to its plans, “including increases in participant premium cost-sharing and elimination of coverage for certain participants.” The changes “reduced the benefit obligation liability at December 27, 2009, by $28,750,000,” according to the report.

A contract signed last March with the St. Louis Newspaper Guild “eliminated postretirement medical coverage for active employees and defined pension benefits were frozen. The elimination of postretirement medical coverage … reduced the benefit obligation liability at March 28, 2010, by $6,576,000. The freeze of defined pension benefits … reduced the benefit obligation liability at March 28, 2010, by $2,004,000.”